NIB issues EUR 500 million Environmental Bond

On March 25, NIB issued its first NIB Environmental Bond (NEB) for the year 2021. The EUR 500 million transaction, due April 2027, was successfully tapped, bringing it to a new total outstanding of EUR 1 billion. NIB, with this re-opening, reaches EUR 5 billion of environmental bond issuance.

In accordance with NIB’s Environmental Bond framework (NEB), the use of proceeds from this NEB transaction will be used for financing selected loan projects, which are considered to benefit the environment in NIB’s member countries.

The final orderbook, more than EUR 1.6 billion, allowed NIB to set the final spread at MS-11 bps (yield of -0,4011%), a 3bps tightening from initial guidance.

“We are very excited by this EUR 500 million tap to our 2027 NIB Environmental Bond. This was the right transaction to pass the EUR 5 billion mark of total NEB issuance. The successful transaction, with more than 50 investors participating, is the outcome of our continuous dialog with the SRI investors on how we can cooperate towards a common goal”, says Jens Hellerup, Senior Director, Head of Funding and Investor Relations at NIB.

“Another fantastic outcome for the Nordic Investment Bank in their annual return to EUR green bond market, pricing a EUR 500m increase of their April 2027 Environmental Bond two basis points through fair value. This transaction highlights how a relatively infrequent issuer in EUR can still attract significant demand, even at levels through fair value, thanks to a top quality green bond framework, strong investor relations and well-timed execution”, says Gustav Landström, Head of SSA Origination at Danske Bank.

NIB issued its first environmental bond under the NEB framework in 2011. The framework is aligned with the Green Bond Principles and have a dark green Second Opinion from CICERO. During the upcoming Fall 2021, NIB will celebrate its 10- year anniversary as a green bond issuer.

See a joint press release on the bond transaction here (PDF).

For more information on NIB Environmental Bonds, click here.

Bond summary terms
Issuer:	Nordic Investment Bank (NIB)
Rating:	Aaa (Moody’s stable) / AAA (S&P, stable)
Format:	RegS, Senior Unsecured
Tap Amount:	EUR 500 million
New Outstanding Amount:	EUR 1 billion
Settlement Date:	1 April 2021
Maturity Date:	30 April 2027
Issue Price:	102.473%
Coupon:	0%
Re-Offer Yield:	-0.401%
Spread:	MS-11bps
Listing:	Helsinki
Joint-Lead Managers:	BofA Securities, Danske Bank, Société Générale
ISIN:	XS2326563280 fungible with XS2166209176 on or after 40 days

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact

Mr Jens Hellerup, Senior Director, Head of Funding and Investor Relations, at +358 961 811 401, jens.hellerup@nib.int

Ms Angela Brusas, Director, Funding and Investor Relations, at +358 961 811 403, angela.brusas@nib.int

Mr Alexander Ruf, Director, Funding and Investor Relations, at +358 961 811 402, alexander.ruf@nib.int