Nordic Investment Bank Issues NZD 600 Million Kauri Bond, Named ‘Kauri Issuer of the Year’

Nordic Investment Bank Issues NZD 600 Million Kauri Bond, Named ‘Kauri Issuer of the Year’

(IN BRIEF) On January 15, the Nordic Investment Bank (NIB) issued a new NZD 600 million Kauri bond, reaffirming its presence in the Kauri Market and receiving recognition as the ‘Kauri Issuer of the Year’ at the KangaNews 2023 awards. Originally launched with a minimum target size of NZD 300 million, the bond’s size was doubled due to strong investor demand. This Kauri bond offers a fixed coupon rate of 4.5% and an issue yield of 4.574%. ANZ, Commonwealth Bank of Australia, and Westpac acted as joint-lead managers for the transaction. NIB’s active participation in the Kauri market reflects its commitment to the New Zealand dollar bond market and positions it as the fourth largest issuer in this segment, having raised approximately EUR 6.5 billion in Kauri bonds.

(PRESS RELEASE) HELSINKI, 17-Jan-2024 — /EuropaWire/ — On 15 January, NIB issued a new five-year fixed-rate NZD 600 million Kauri bond. This transaction solidifies NIB’s return to the Kauri Market and follows the recent recognition of the Bank as the ‘Kauri Issuer of the Year’ at the KangaNews 2023 awards.

The benchmark bond was launched with an initial minimum target size of NZD 300 million and was doubled due to strong investor demand. The new Kauri bond, with a volume of NZD 600 million has a fixed coupon rate of 4.5% and an issue price of 99.672580%, resulting in an issue yield of 4.574%.

The joint-lead managers for the transaction are ANZ, Commonwealth Bank of Australia, and Westpac.

“This latest issuance demonstrates NIB’s gravitas as an NZD issuer, with continued interest from New Zealand investors in our bonds,” says Jens Hellerup, Head of Funding and Investor Relations at NIB. “Having raised approximately EUR 6.5 billion in the Kauri market, we are now positioned as the fourth largest issuer in this segment.”

Kauri bonds are issued by foreign entities in New Zealand dollars to local investors. NIB has been a consistent participant in the Kauri market, winning the KangaNews ‘Kauri Issuer of the Year’ award four times since 2007. This reflects NIB’s commitment to the New Zealand dollar bond market.

“The Kauri market continues to play an important role in our funding strategy allowing us to increase the diversity of the products we make available to our investors globally,” says Kim Skov Jensen, NIB’s Vice President & CFO.

Read about the Funding outlook for 2024.

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:

Jens Hellerup
Senior Director, Head of Funding and Investor Relations
+358 961 811 401
jens.hellerup@nib.int

Angela Brusas
Director, Funding and Investor Relations
+358 961 811 403
angela.brusas@nib.int

Alexander Ruf
Director, Funding and Investor Relations
+358 961 811 402
alexander.ruf@nib.int

SOURCE: Nordic Investment Bank