NIB returns to Icelandic bond market with ISK 8.5 billion environmental bond

The Nordic Investment Bank (NIB) has marked its return to the Icelandic bond market after a 16-year absence with the launch of an ISK 8.5 billion (approximately USD 61.5 million) seven-year inflation-linked NIB Environmental Bond. This issuance is a significant milestone, making NIB the first foreign issuer in the Icelandic bond market since 2008.

NIB’s re-entry into the market signals its commitment to diversifying its funding currency mix and strengthening financial cooperation with Iceland. The bond is part of the NIB Environmental Bond (NEB) program, which supports sustainable investments across its eight member countries, including Iceland.

Strong Support from Icelandic Market

The issuance has been met with enthusiasm from Icelandic investors and financial institutions. Magnús Harðarson, President of Nasdaq Iceland, welcomed NIB back in press release.

“We are pleased to welcome the Nordic Investment Bank back to the Icelandic market. Their presence in all the Nasdaq Nordic markets marks a significant milestone. NIB’s green bonds are a welcome addition to our fast-growing sustainable bond market, bolstered by a robust local investor base committed to sustainable projects.”

Eyrún Anna Einarsdóttir, Managing Director of Asset Management and Capital Markets at Landsbankinn, greeted the move as a sign of the strength of Icelandic financial markets.

“We are very pleased with the outcome of this highly successful bond sale and our collaboration with NIB, which I am confident will continue. It is a signal of the strength of the Icelandic financial market that such a robust international financial institution is once again issuing bonds in Iceland after a long absence.”

A Milestone for Sustainable Finance

The bond issuance reflects NIB’s ongoing commitment to sustainability. The proceeds from the bond will be directed towards projects that provide environmental benefits, in line with the NIB Environmental Bond Framework.

Jens Hellerup, Head of Funding and Investor Relations at NIB, emphasized the significance of the issuance.

“I am very pleased to return to the ISK bond market and see the strong support from domestic investors. The combination of a AAA credit, a strong green bond framework and the diversification opportunity paved the way for attracting the local pension funds.”

Strengthening Regional Commitment

With this bond, NIB is now issuing bonds in all its member countries’ domestic currencies, reinforcing its role as a key financial institution in the Nordic-Baltic region.

Kim Skov Jensen, Chief Financial Officer at NIB, described the issuance as a joint effort among key stakeholders.

“NIB takes pride in supporting our member country Iceland further by offering loans in ISK. This has been a joint effort between NIB’s Treasury, Lending, and all supporting functions, together with Icelandic investors and customers, Landsbankinn, Nasdaq and other stakeholders. We are pleased with the outcome.”

About NIB

The Nordic Investment Bank is owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The bank finances private and public sector projects both within and outside its member countries and holds the highest possible credit rating of AAA/Aaa from S&P Global Ratings and Moody’s.