Nordic Investment Bank Advances Sustainability with SEK 2 Billion Environmental Bond

Nordic Investment Bank Advances Sustainability with SEK 2 Billion Environmental Bond

(IN BRIEF) Nordic Investment Bank (NIB) has issued a SEK 2 billion Environmental Bond (NEB), marking its commitment to sustainability. This is NIB’s second NEB this year, following a EUR 500 million issuance in January. The funds raised will support carefully selected projects with significant environmental benefits in the Nordic-Baltic region. The issuance generated strong interest from Swedish investors, with orderbooks closing at nearly SEK 2.7 billion. All orders came from domestic investors, primarily Insurance & Pension Funds. The NEB matures on September 22, 2028, with an annual coupon rate of 3.500%. NIB prioritizes transparency, reporting the impact of each financed project and their cumulative impact across various categories. Detailed information is available on the bank’s website, showcasing its commitment to responsible finance and sustainability.

(PRESS RELEASE) HELSINKI, 12-Sep-2023 — /EuropaWire/ — The Nordic Investment Bank (NIB), an international financial institution with focus on the Nordic and Baltic countries, marked another milestone in its commitment to sustainability by launching a five-year SEK 2 billion Environmental Bond (NEB). This NEB issuance, the second of the year, follows a successful EUR 500 million issuance in January. The proceeds from this endeavor will be dedicated to meticulously selected projects with substantial environmental benefits, further underscoring NIB’s dedication to fostering a greener future.

NIB’s foray into the sustainable bond market swiftly garnered enthusiastic interest from environmentally conscious Swedish investors. Such was the demand that orderbooks ultimately closed at nearly SEK 2.7 billion, highlighting the strong appetite for investments that make a positive environmental impact.

“We are pleased to be back to the green bond market in Swedish krona. Looking at the results, it is great to see that not only NIB’s loyal green investor base, but also new investors are keen to invest in our NEBs,” says Jens Hellerup, Head of Funding & Investor Relations at NIB. “This furthers our commitment to financing sustainable projects in the Nordic–Baltic region.”

Remarkably, all orders were placed by domestic investors in Sweden, reflecting a commitment to driving sustainability on a local level. In terms of investor types, Insurance & Pension Funds secured the majority of allocations at 59%, followed by Asset Managers at 39%, with Corporates accounting for the remaining 2%.

“Nordea Asset Management is a long-term supporter of NIB and their Environmental Bond programme,” says Per-Erik Grahn, Portfolio Manager at Nordea Asset Management who were among the investors. “We are happy to be part of a transaction that is directly linked to a greener future in the entire Nordic-Baltic region,” adds Jerk Matero, Portfolio Manager at Nordea Asset Management.

The joint lead managers for this transaction are Danske Bank and SEB, two prominent financial institutions renowned for their expertise in sustainable finance.

“A fantastic result for NIB in the Swedish kroner market today, issuing an oversubscribed SEK 2 billion NEB Benchmark. The outcome showcases how issuance in green format, from a top quality issuer, can unlock investor demand and enable pricing at an attractive level in relation to relevant comparables. Danske Bank is proud to have supported NIB on another successful NEB issue,” comments Gustav Landström, Head of SSA Origination at Danske Bank.

“Congratulations to NIB for yet another successful Environmental Bond issuance in SEK. The proceeds of these bonds fund the future for this region and is such a joy to see investors embracing this,” says Anna Sjulander, Head of SSA and Public Sector Origination at SEB.

This NEB has a maturity date of September 22, 2028, and offers an annual coupon rate of 3.500%. Importantly, the funds raised through this initiative will be channeled into a dedicated portfolio for the subsequent disbursement of loans to carefully chosen sustainable projects across the Nordic–Baltic region.

NIB is committed to transparency and accountability, and as part of its sustainability efforts, it reports on the impact of each financed project and the aggregated impact across seven different financing categories. Detailed impact tables, along with a comprehensive list of all financed projects, are readily accessible on the Bank’s website, allowing stakeholders and the public to track the positive environmental outcomes generated by their investments.

NIB remains steadfast in its mission to drive sustainability through financial innovation and responsible investment, playing a vital role in the ongoing transition toward a more environmentally conscious future.

See more information on NIB Environmental Bonds.

Bond summary terms
Issuer: Nordic Investment Bank
Rating: Aaa / AAA by Moody’s / S&P
Issue amount: SEK 2 billion
Coupon: 3.500%, Annual
Launch date: 12 September 2023
Payment date: 22 September 2023
Maturity date: 23 September 2028
Re-offer price: 99.613%
Re-offer yield: 3.586%
Listing: Nasdaq Stockholm
Joint lead managers: Danske Bank and SEB
ISIN: XS2690013722

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.

For further information, please contact

Jens Hellerup
Senior Director, Head of Funding and Investor Relations,
+358 961 811 401

Angela Brusas
Director, Funding and Investor Relations
+358 961 811 403

Alexander Ruf
Director, Funding and Investor Relations
+358 961 811 402

SOURCE: Nordic Investment Bank



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