NIB Funding outlook 2025

As we bid farewell to a year of market recalibration, we are pleased to present a review of NIB’s performance in 2024 and our strategic outlook for 2025. In 2024, NIB issued bonds totalling EUR 9.1 billion, with an average maturity of around 4.5 years. The Bank tapped into diverse markets—issuing USD global benchmark bonds, increasing its presence in both green and conventional EUR formats, and engaging in a wide range of other currencies and products. In 2024 NIB  expects to fund EUR 8 to 9bn.

A year of repricing and resilience

The year 2024 was one of notable transformation within the fixed income markets, marked by a widespread repricing of supranational and agency issuers. This trend, which went beyond the Eurozone and USD, also affected currencies such as the AUD and GBP, driven by a re-evaluation of government bond values and subsequent spread adjustments across credit classes.

Amidst these shifts, NIB stood firm with its robust financial strategy, successfully navigating a volatile landscape. Our funding activities were characterised by a focus on benchmark issuance and the promotion of sustainability-focused financial instruments. Adapting to the evolving market, we saw a strategic increase in EUR-denominated issuance, which rose to a record one-third of our total funding, while USD issuance adjusted to match this proportion.

The Framework for the issuance of NIB Environmental Bonds (NEB), aimed at supporting green projects, was updated. This, coupled with an increase in loans supporting environmental projects, enabled us to boost our green funding to an impressive 20%. Finally, NIB was awarded the Kauri issuer and bond award from the Antipodean financial magazine KangaNews for the second consecutive year and fifth time overall—a notable achievement for a smaller issuer in a far-flung market.

2025: Strategy and sustainability

Looking ahead, we anticipate that the repricing trend will persist. NIB is well positioned to address these challenges, building on our effective approach from previous years. Our focus will remain on benchmark issuance, particularly in USD, complemented by a strong line-up of NEB offerings in EUR and Nordic currencies. These initiatives will allow investors to participate in environmentally beneficial projects while benefiting from NIB’s strong credit profile.

Diversification remains a cornerstone of our strategy, with plans to extend our funding into other key currencies to strengthen our funding base. This includes funding in British pounds, Nordic kroners, as well as New Zealand and Australian dollars. While we do not foresee obvious political “risk” events—such as the 2024 US elections—success in the coming year will depend on identifying the right issuance windows in what we expect to be a more crowded and volatile market.

The funding programme’s size will be between EUR 8 and 9 billion, once again in line with previous years. In response to recent repricing, we encourage investors to consider the long-term value and stability that NIB provides. Our commitment to maintaining the highest possible credit ratings and stability ensures that our bonds remain an attractive option for a diversified investment portfolio.

A sustainable path forward

As we move forward, NIB reaffirms its commitment to sustainability and financial stability. Our strategic approach for 2025 aims to ensure diversified funding sources for the Bank, offering investors a reliable and attractive path through evolving market dynamics, while aligning with the global shift towards eco-conscious investments.

“In 2025, financial markets will continue to face significant challenges, and high uncertainty will prevail. It’s imperative for our team to act decisively when opportunities present themselves. I am confident that NIB’s reputation will continue to attract a diverse range of investors, and we remain cautiously optimistic for the year ahead,” says Jens Hellerup, Head of Funding, summarising our outlook.

We invite our investors to join us on this journey towards a sustainable future, confident that their investments will not only contribute to the greater good but also provide a solid foundation for their financial goals.