NIB invests in Spar Nord Bank’s MREL-eligible bond issue in Denmark

NIB is investing EUR 10 million in a EUR 250 million, 6-year Green MREL-eligible senior non-preferred bond issued by the Danish commercial bank Spar Nord Bank A/S.

Under EU Banking Union regulations, participating banks must meet specific regulatory targets to absorb losses and restore their capital positions, enabling them to continue their economic functions during and after a crisis. This bond issuance meets the minimum requirement for own funds and eligible liabilities (MREL).

The proceeds of the issuance support Spar Nord Bank´s regulatory compliance, the diversification of its funding base and the increase of its loss-absorption capacity as well as  promote the bank’s financing of small and medium-sized enterprises. An amount equal to the net proceeds of the bond will be used to finance projects in accordance with Spar Nord’s Green Bond Framework from March 2024.

“NIB supporting this MREL-eligible bond issuance aligns with our strategy to enhance client value and foster capital market development, benefiting SMEs in Denmark financed by Spar Nord Bank,” says André Küüsvek, NIB President and CEO.

Founded in 1824, Spar Nord Bank A/S is a leading commercial bank in Denmark. The Bank primarily serves retail and SME clients via 60 branches across the country. The bank is the 6th largest bank in Denmark, with total assets of EUR 18 billion and 1,703 employees.

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.

For further information, please contact
Joakim Häger, Banker, Financial institutions, at +358 10 618 0439, joakim.hager@nib.int
Arild Moen, Associate Director, Communications, +358 10 618 0496, arild.moen@nib.int