🇫🇮 NIB issues its largest NIB Environmental Bond

On 4 September, NIB issued a 5-year EUR 750 million NIB Environmental Bond (NEB). The transaction is NIB’s largest green bond, evidencing the strong support from their global investor community following the release of the Bank’s updated NEB Framework.

The final orderbook was EUR 1.2 billion, allowing NIB to launch a EUR 750 million transaction, which represents the Bank’s largest NEB on record. NIB has now completed EUR 7.5 billion of their expected EUR 8.5-9.5 billion 2024 Funding programme.

“We were thrilled to announce the update of our NEB Framework last week. The updated NEB framework proudly received a Dark Green Second Opinion from S&P Global Ratings, underscoring our deep commitment to a low-carbon climate resilient future. It is fantastic that our NIB Funding & Investor Relations team were able to put the updated framework to work already this week,” comments Kim Skov Jensen, NIB CFO and Head of Treasury.

“With challenging markets, we were happy to print a solid EUR 750 million bond, the largest NEB in our history. This shows the strong confidence our investors have in NIB financing projects with significant positive environmental impacts,” says Jens Hellerup, NIB Head of Funding and Investor Relations.

Over 35 investors participated with several accounts attracted by the specific Environmental use of Proceeds. The Proceeds will be used to finance projects and activities providing environmental benefits, as described in NIB’s Environmental Bond Framework.

The transaction saw a broad distribution across both geographies and investor types. Banks took 38% of the allocation followed by Central banks & Official Institutions (26%) and Fund Managers taking 22%. Pension Funds/Insurance took 11% of the allocation while Hedge Funds took 3%. In terms of geography, 22% of the allocation went to DACH investors followed by BeNeLux (20%), UK (16%), Nordics (15%), France (15%) and Asia (10%). The rest of Europe was allocated 2% of the transaction.

“Congratulations to the NIB team for the update of the NIB Environmental Bond (NEB) Framework and the issuance of its 3rd EUR benchmark in 2024. The solid outcome of this EUR 750 million 5-year benchmark in a less straight-forward backdrop illustrates NIB’s strong Green Bond investor following. With this new deal NIB has successfully re-established itself as a recognized rare high quality green bond issuer in the EUR market. BNP Paribas is very proud to have participated in this milestone transaction,” says Salma Guerich, DCM SSA, BNP Paribas

NIB priced its EUR 750 million NEB at Euro mid-swaps +8bps, equivalent to 38.1bps over the German Government 2.5% Oct-29. The new issue establishes a current-coupon reference point and injects liquidity in the 5-year sector of NIB’s EUR curve, more than 15 years after the last 5-year EUR benchmark syndication in April 2009. In fact, this was the first 5-year NEB ever issued by NIB.

The joint lead managers for this transaction are Barclays, BNP Paribas, Danske Bank, Morgan Stanley.

Read the joint press release here (PDF).  

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

Jens Hellerup, Senior Director, Head of Funding and Investor Relations, at +358 961 811 401, [email protected]

Angela Brusas, Director, Funding and Investor Relations, at +358 961 811 403, [email protected]

Alexander Ruf, Director, Funding and Investor Relations, at +358 961 811 402, [email protected]

Originally published on 5 September by Nordic Investment Bank.

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