NIB guidance: EUR 500m 10/2029 SONIA +31 area
TL;DR
NIB issued a EUR 500 million environmental bond with a negative yield, priced at -0.401%, to fund green projects across Nordic countries. The bond attracted strong investor demand, tightening spreads and reinforcing NIB's commitment to sustainability.
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NIB guidance: EUR 500m 10/2029 SONIA +31 area
NIB Issues EUR 500 Million Environmental Bond with Negative Yield
On March 25, 2021, the Nordic Investment Bank (NIB) issued a EUR 500 million tap of its 2027 Environmental Bond (NEB), increasing the total outstanding amount to EUR 1 billion. The bond, which matures on April 30, 2027, was priced at a re-offer yield of -0.401% with a spread of MS-11 basis points, reflecting strong investor demand. This transaction marked NIB's fifth environmental bond issuance under its NEB framework, contributing to a cumulative total of EUR 5 billion in environmental bond issuance by the bank.
The bond's proceeds are allocated to projects aligned with NIB's Environmental Bond framework, which adheres to the Green Bond Principles and includes a "dark green" Second Opinion from CICERO. Projects funded include renewable energy, energy efficiency, and sustainable transportation initiatives across NIB's eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden.
The transaction attracted over 50 investors, with an order book exceeding EUR 1.6 billion, enabling NIB to tighten the spread by 3 basis points from initial guidance. Senior Director Jens Hellerup highlighted the significance of the issuance, noting it reinforced NIB's collaboration with socially responsible investors to advance environmental goals.
Financial terms for the bond include a 0% coupon, an issue price of 102.473%, and a final maturity of 6 years. The bond is listed on the Helsinki exchange and is rated AAA by S&P and Aaa by Moody's.
While the referenced "SONIA +31 area" in the guidance topic is not explicitly detailed in available materials, NIB's environmental bond framework emphasizes transparency and adherence to international sustainability standards, positioning it as a benchmark for green financing in the Nordic region.
(https://www.nib.int/news/nib-issues-eur-500-million-environmental-bond): Nordic Investment Bank (NIB) press release, March 2021.
