NIB Marks Historic Return to Icelandic Market with Successful 8.5 Billion ISK Green Bond Issuance

NIB Marks Historic Return to Icelandic Market with Successful 8.5 Billion ISK Green Bond Issuance

(IN BRIEF) The Nordic Investment Bank (NIB) has successfully launched a seven-year, 8.5 billion Icelandic krona inflation-linked Environmental Bond, marking its return to the Icelandic bond market after over 16 years. This milestone reinforces NIB’s commitment to diversifying its funding sources and supporting sustainable projects within Iceland.

(PRESS RELEASE) HELSINKI, 21-Feb-2025 — /EuropaWire/ — On February 20, 2025, the Nordic Investment Bank (NIB) made a landmark return to the Icelandic bond market with the issuance of a seven-year, 8.5 billion Icelandic krona (ISK) inflation-linked Environmental Bond. This marks NIB’s first return to the Icelandic bond market since 2007, making it a highly anticipated event in the financial world and a significant milestone for both NIB and Iceland’s sustainable bond market.

This issuance not only marks NIB’s re-entry into the ISK bond market but also signifies its role as the first foreign issuer to participate in the domestic ISK market since 2008. With this move, NIB strengthens its diversified funding currency mix, offering greater flexibility in its financing and further solidifying its presence in Iceland.

Iceland, a member country of NIB, stands to benefit from the bond by securing better access to ISK financing for its sustainable investment projects. This new issuance will help NIB support its Icelandic customers as they seek green financing solutions, aligning with NIB’s mission of fostering environmental sustainability through its bond program.

Magnus Hardarson, President of Nasdaq Iceland, expressed his excitement about NIB’s return: “It is a pleasure to welcome the Nordic Investment Bank back to the Icelandic market. Their reintegration into all the Nasdaq Nordic markets is a major milestone. NIB’s green bonds add immense value to our growing sustainable bond market, especially with the backing of a strong local investor base committed to supporting environmentally conscious projects.”

Eyrún Anna Einarsdóttir, Managing Director of Asset Management and Capital Markets at Landsbankinn, also expressed her enthusiasm: “We are delighted with the results of this highly successful bond sale. This collaboration with NIB signals the strength of the Icelandic financial market, with such a respected international institution once again issuing bonds here. NIB’s AAA credit rating and the overwhelming demand in the auction showcase Icelandic investors’ strong interest in sustainable bonds.”

Jens Hellerup, Head of Funding and Investor Relations at NIB, reflected on the strong reception of the bond: “I am thrilled with the success of this issuance in the ISK market. The support from local investors was remarkable, and the combination of NIB’s AAA credit rating, our green bond framework, and the diversification it offers helped attract twelve domestic institutional investors. This is a significant step for NIB as we add ISK to our funding currency mix.”

Kim Skov Jensen, Chief Financial Officer at NIB, added, “We are proud to further support Iceland, one of our member countries, by offering loans in ISK. This issuance is the result of a close collaboration between NIB’s Treasury, Lending, and supporting teams, along with Icelandic investors, customers, Landsbankinn, Nasdaq, and all other key stakeholders. With this bond, NIB now issues bonds in the domestic currencies of all its member countries, which underscores our commitment to the region.”

In line with NIB’s Environmental Bond Framework, the proceeds from this bond will be used to finance selected projects that are expected to have a positive environmental impact, furthering NIB’s core mission of promoting sustainability.

Availability:
For further information on NIB Environmental Bonds, click here.

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 S&P Global Ratings and Moody’s.

Media Contacts:

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

Angela Brusas
Director, Funding & Investor Relations
+3589618 11403
angela.brusas@nib.int

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

SOURCE: Nordic Investment Bank