NIB Invests €10 Million in Spar Nord Bank’s Green MREL-Eligible Bond to Boost Danish SME Financing

NIB Invests €10 Million in Spar Nord Bank’s Green MREL-Eligible Bond to Boost Danish SME Financing

(IN BRIEF) The Nordic Investment Bank (NIB) has invested €10 million in a €250 million, 6-year Green MREL-eligible bond issued by Denmark’s Spar Nord Bank. This bond helps the bank meet EU regulatory requirements for loss absorption and capital recovery during crises. The proceeds will support regulatory compliance, funding diversification, and increase Spar Nord’s ability to absorb losses. Additionally, funds will be used to finance green projects under Spar Nord’s Green Bond Framework starting in March 2024. This investment also benefits small and medium-sized enterprises (SMEs) in Denmark.

(PRESS RELEASE) HELSINKI, 27-Sep-2024 — /EuropaWire/ — The Nordic Investment Bank (NIB) has announced a €10 million investment in a €250 million, 6-year Green MREL-eligible senior non-preferred bond issued by Spar Nord Bank A/S, one of Denmark’s leading commercial banks. This bond helps Spar Nord Bank comply with EU Banking Union regulations, which require banks to meet minimum standards for own funds and eligible liabilities (MREL) to manage losses and stabilize during financial crises.

The proceeds will support Spar Nord Bank’s compliance with regulatory requirements, help diversify its funding sources, and enhance its loss-absorption capacity. Additionally, the funds will be used to finance green projects in line with Spar Nord’s Green Bond Framework, starting in March 2024. This investment will also contribute to the bank’s continued support of small and medium-sized enterprises (SMEs) in Denmark.

NIB President and CEO André Küüsvek commented, “Our investment in Spar Nord Bank’s MREL-eligible bond aligns with our mission to enhance client value and foster development in the capital markets, benefiting SMEs in Denmark.”

Spar Nord Bank, founded in 1824, is Denmark’s 6th largest bank, with total assets of €18 billion, 1,703 employees, and 60 branches serving retail and SME clients across the country.

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.

Media Contacts:

Joakim Häger
Banker, Financial institutions
+358 10 618 0439
joakim.hager@nib.int

Arild Moen
Associate Director, Communications
+358 10 618 0496
arild.moen@nib.int

SOURCE: Nordic Investment Bank