The Nordic Investment Bank on Thursday priced a €1 billion, seven-year Environmental Bond, the largest ever issued under its Environmental Bond Framework.
The bond was issued under NIB's established Environmental Bond Framework, with proceeds used to finance selected loan projects that are considered to benefit the environment. Since 2011, and including this transaction, NIB has issued more than EUR 12 billion in green bonds, including transactions in all Nordic currencies.
LARGEST NIB ENVIRONMENTAL BOND
At €1 billion, the deal sets a new benchmark size for NIB Environmental Bonds. The bond carries a 3.125% coupon, was priced at 13 basis points over mid-swaps for a re-offer yield of 3.142%, and matures on 30 May 2033. Danske Bank, a joint lead manager, said it provides a new longest point on NIB's benchmark curve.
NIB said the order book was the largest on record for an NIB Environmental Bond; Crédit Agricole CIB put the oversubscription at 2.3 times. Joint lead managers were Crédit Agricole CIB, Danske Bank, DZ Bank and Nordea.
NORDIC-BALTIC FOCUS ON CLIMATE PROJECTS
Under the framework updated in 2024, eligible categories include renewable energy (including transmission), clean transport, water management and protection, green buildings, sustainable fuel production and infrastructure, climate change adaptation, and sustainable technology and innovation.
Danske Bank said NIB "is a rare name in the EUR market with a strong following across investors, especially with central banks and official institutions".
NIB is the international financial institution of its eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. Thursday's transaction took NIB to approximately 63% of its 2026 funding target of EUR 8.5-9.5 billion.
Bank news that matters, every weekday.
Follow The Global Banker on LinkedIn