NIB breaks records with USD 1 billion benchmark at tightest ever spread to Treasuries and largest oversubscription ratio

NIB breaks records with USD 1 billion benchmark at tightest ever spread to Treasuries and largest oversubscription ratio

(IN BRIEF) The Nordic Investment Bank (NIB) has set a record in global capital markets with a USD 1.0 billion three-year benchmark bond priced at just 2.5 basis points over US Treasuries—the tightest spread ever achieved by a supranational issuer. The transaction attracted more than USD 4.4 billion in orders, four times oversubscribed, the largest oversubscription ratio in NIB’s USD issuance history. Backed by strong participation from over 100 investors worldwide, including 64% from central banks and official institutions, the bond priced with a 3.750% coupon and 3.753% yield. The result highlights NIB’s strong market standing and investor trust in its AAA/Aaa-rated name. Settlement takes place on 28 August 2025, with proceeds directed towards NIB’s mandate to finance sustainable and productivity-enhancing projects.

(PRESS RELEASE) HELSINKI, 22-Aug-2025 — /EuropaWire/ — The Nordic Investment Bank (NIB) has set new records in the global capital markets with the pricing of its latest USD benchmark bond. On 21 August 2025, the Bank launched a USD 1.0 billion three-year global benchmark that priced at just 2.5 basis points above the three-year US Treasury— the tightest spread ever achieved by a supranational, sovereign, and agency (SSA) issuer.

The transaction also generated NIB’s highest-ever oversubscription ratio, with an orderbook exceeding USD 4.4 billion, more than four times the issue size, from over 100 high-quality investors. Final pricing tightened by 4 basis points from initial guidance, reflecting the exceptionally strong demand.

“This transaction is a clear vote of confidence in NIB,” said Kim Skov Jensen, CFO & Vice President at NIB. “We identified a narrow issuance window just after the summer break and were able to move quickly. Despite the minimal yield pickup over Treasuries, investor appetite was remarkable, reflecting the trust in our name and mandate, as well as the diversification we offer.”

Jens Hellerup, Head of Funding & Investor Relations at NIB, noted: “The USD market opened strongly this week, and by moving ahead of the Jackson Hole Summit and in the absence of competing supply, we seized the opportunity to achieve record pricing and one of our largest-ever orderbooks. This outcome underscores NIB’s strong reputation and ability to attract demand even at historically tight levels.”

The bond carries a semi-annual coupon of 3.750%, priced at 99.992% to yield 3.753%. Settlement will occur on 28 August 2025, with maturity on 28 August 2028. The transaction was led by Daiwa Capital Markets, HSBC, J.P. Morgan, and RBC Capital Markets.

Joint leads praised NIB’s execution and investor outreach. Tina Nguyen, Executive Director, SSA DCM at J.P. Morgan, commented: “NIB moved decisively to capture a clear issuance window, achieving a 4.4x oversubscribed book and pricing at an unprecedented tight level to Treasuries. This was a landmark USD Global transaction.” Stuart McGregor, Managing Director at RBC Capital Markets, added: “This deal is a testament to NIB’s consistency and credibility. Years of proactive investor engagement have built the foundation for this strong outcome.”

The orderbook reflected broad-based participation across regions and investor groups. By geography, allocations went to EMEA (48%), the Americas (33%), and Asia (19%). By investor type, central banks and official institutions took the majority share at 64%, followed by banks (27%), asset managers (8%), and others (1%).

Proceeds from the bond will support NIB’s mission to finance projects that improve productivity and benefit the environment across its member countries.

Bond summary terms

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, from leading rating agencies Standard & Poor’s and Moody’s.

Media Contacts:

Jens Hellerup, Head of Funding & Investor Relations, +358 9618 11401, jens.hellerup@nib.int

Angela Brusas, Director, Funding & Investor Relations, +358 9618 11403, angela.brusas@nib.int

Alexander Ruf, Director, Funding & Investor Relations, +358 9618 11402, alexander.ruf@nib.int

OURCE: Nordic Investment Bank