Nordic Investment Bank Secures USD 1.25 Billion in 5-Year Global Benchmark Bond Amid Volatile Markets

Nordic Investment Bank Secures USD 1.25 Billion in 5-Year Global Benchmark Bond Amid Volatile Markets

(IN BRIEF) The Nordic Investment Bank (NIB) successfully priced a USD 1.25 billion 5-year global benchmark bond, demonstrating strong global demand amid volatile market conditions. The bond, with a 3.750% coupon, will be used to fund projects that drive productivity and environmental sustainability. The issuance was well-supported by investors from the Americas, EMEA, and APAC regions, reinforcing NIB’s position as a trusted issuer in the global bond market.

(PRESS RELEASE) HELSINKI, 2-May-2025 — /EuropaWire/ — On April 30, 2025, the Nordic Investment Bank (NIB) successfully priced a USD 1.25 billion 5-year global benchmark bond, marking the Bank’s first USD benchmark issuance of the year. This follows NIB’s EUR 750 million 7-year green bond in March and EUR 1 billion long 3-year benchmark in April.

In a volatile macroeconomic environment, NIB strategically timed the issuance, securing a spread of 6.6 basis points over the 5-year US Treasury—one of the tightest spreads for a supranational issuer in 2025. Investor demand exceeded USD 2.0 billion, enabling the pricing to tighten by 1 basis point from the initial guidance and allowing the deal size to be set at USD 1.25 billion. The bond was priced with minimal new issue concession and saw participation from more than 40 investors, highlighting NIB’s stability and trust as an issuer in uncertain market conditions.

The bond offers a semi-annual coupon of 3.750%, was priced at 99.747%, and yields 3.806%. It will settle on May 9, 2025, and mature on May 9, 2030. The joint lead managers for the transaction were BMO, Goldman Sachs Bank Europe SE, Nomura, and TD Securities.

Geographically, the investor participation was dominated by the Americas, with 49.7%, followed by EMEA with 32.6%, and APAC with 17.7%. In terms of investor type, Central Banks/Official Institutions (CB/OIs) took the largest share at 43.4%, followed by Banks at 40.9%, Asset Managers at 13.9%, and Others at 1.8%.

Kim Skov Jensen, CFO & Head of Treasury & Finance at NIB, commented, “In volatile markets, agility and responsiveness are key to managing funding and liquidity. I am pleased with our successful access to the USD global benchmark market. NIB’s role continues to grow as we support both the private and public sectors in navigating current economic and geopolitical challenges. The backing from our owners and stakeholders provides a solid foundation, which investors clearly value.”

Jens Hellerup, Head of Funding & Investor Relations at NIB, added, “These volatile market conditions made us cautious, but by waiting for calmer moments, we were able to achieve strong investor support and exceed USD 2 billion in demand. This is especially gratifying given the competition from other supranational issuers.”

Mark Yeomans, Managing Director at Nomura DCM, said, “NIB has once again shown its strong market position and broad appeal among USD global fixed-income investors. The transaction achieved the tightest spread to US Treasuries for a supranational 5-year bond this year, underscoring NIB’s strong credit quality and investor following.”

The proceeds from the transaction will be used to finance projects that enhance productivity and contribute to environmental benefits, in line with NIB’s mission.

So far in 2025, NIB has funded EUR 5.5 billion, with a target of EUR 8.0–9.0 billion for the full year. For more information on NIB’s funding program, please visit NIB Funding Programme.

Bond Summary Terms:

• Issuer: Nordic Investment Bank (NIB)
• Rating: Aaa (Moody’s), stable / AAA (S&P), stable
• Format: Global, SEC Registered, Senior Unsecured
• Issue Amount: USD 1.25 billion
• Settlement Date: 9 May 2025 (T+7)
• Maturity Date: 9 May 2030
• Coupon: 3.750%, Semi-Annual, Fixed
• Issue Price: 99.747%
• Reoffer Yield: 3.806% (Semi-Annual)
• Spread: CT5 +6.6bps / MS +43bps
• Listing: Luxembourg Stock Exchange’s Regulated Market

Joint Lead Managers: BMO, Goldman Sachs Bank Europe SE, Nomura, TD Securities

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

SOURCE: Nordic Investment Bank