EIB issues its first NOK domestic bond

1-2-2013 — /europawire.eu/ — Today the European Investment Bank (EIB) priced its first bond in domestic Norwegian format geared for the local market. The NOK 1bn (EUR 135m) issue carries a quarterly coupon of 3mNIBOR+20bp and has a final maturity date of 27^th February 2018. It has been placed with local fund managers and bank treasuries.

The bond will be registered with the Norwegian Central Securities Depository, Verdipapirsentralen (VPS), and listed at the Luxembourg Stock Exchange.

The EIB has a strategic approach to local capital markets. Issuance of bonds with domestic registration allows the Bank to broaden its investor base and achieve further diversification of its borrowing programme. By accessing the NOK domestic capital market, the EIB has not only demonstrated its appeal with Norwegian investors but also complemented its international NOK funding programme.

Norwegian Kroner was a significant funding currency for the EIB in 2012, raising NOK 4.23bn. In 2013, the Bank has so far launched 4 transactions in international NOK format for a total of NOK 1.8bn, placed mostly with Asian and European accounts.

The lead manager for the transaction was DNB Bank ASA.

With this issue, EIB has raised over EUR 17.5 billion of its funding target of EUR 70 billion in 2013.

Comments on the issue:

Eila Kreivi, Director and Head of Capital Markets Department at the EIB, said: ‘’The EIB has a longstanding track record as an issuer in international NOK format. Growing demand from Norwegian institutional accounts eager to diversify their NOK investments has allowed the Bank to launch its first domestic bond, placed entirely with local institutional investors. The EIB will explore ways to build on this inaugural issue in domestic format.’’

Morten Fornes, Fixed Income Sales at DNB Markets, said: ‘’DNB made a step to diversify the NOK domestic market as the arranger of EIB’s first domestic bond issuance in Norwegian Kroner. The notes were well received by Norwegian funds and treasuries. We strongly believe this first domestic issue will lead to increased interest in EIB’s name, as there is a natural demand for 0% risk-weighted assets among the broad Norwegian investor base.’’

Summary Terms and Conditions for the new bond issue:

Notes to Editors:

Background information on EIB

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The Bank’s strong credit standing is underpinned by exceptional asset quality, a strong capital base, firm shareholder support, robust liquidity, conservative risk management and a sound funding strategy.

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