NIB launches ISK 8.5 billion environmental bond

On 20 February, NIB launched a seven-year, 8.5 billion Icelandic krona inflation-linked NIB Environmental Bond. This issuance is the Bank’s first issuance in the ISK bond market after an absence of over 16 years, with its last issuance in 2007, making it a significant milestone.

The Bank is thrilled to be back and to include ISK in its diversified funding currency mix, and to be the first foreign issuer to issue in the domestic ISK market since 2008.

As a member country of NIB, Iceland benefits from a strong lending relationship, and this bond allows NIB to better serve customers in Iceland seeking ISK financing for their investments.

Magnus Hardarson, President of Nasdaq Iceland said: “We are pleased to welcome the Nordic Investment Bank back to the Icelandic market. Their presence in all the Nasdaq Nordic markets marks a significant milestone. NIB’s green bonds are a welcome addition to our fast-growing sustainable bond market, bolstered by a robust local investor base committed to sustainable projects.”

Eyrún Anna Einarsdóttir, Managing Director, Asset Management and Capital Markets of Landsbankinn said: “We are very pleased with the outcome of this highly successful bond sale and our collaboration with NIB, which I am confident will continue. It is a signal of the strength of the Icelandic financial market that such a robust international financial institution is once again issuing bonds in Iceland after a long absence. NIB holds an AAA credit rating and the volume of demand in the auction demonstrates that Icelandic investors have a strong interest in including such bonds, issued by NIB, in their portfolios.”

Jens Hellerup, Head of Funding and Investor Relations at NIB said: “I am very pleased to return to the ISK bond market and see the strong support from domestic investors. The combination of a AAA credit, a strong green bond framework and the diversification opportunity paved the way for attracting the local institutional investors. Some twelve investors participated. Adding ISK to our current mix of funding currencies and including it in our NIB Environmental Bond program is an important step for us.”

Kim Skov Jensen, Chief Financial Officer at NIB said: “NIB takes pride in supporting our member country Iceland further by offering loans in ISK. This has been a joint effort between NIB’s Treasury, Lending, and all supporting functions, together with the Icelandic investors and customers, Landsbankinn, Nasdaq and other stakeholders. We are pleased with the outcome, and NIB is now issuing bonds denominated in the domestic currencies of all its member countries, further strengthening its commitment to the region.”

In accordance with NIB’s Environmental Bond Framework, the use of proceeds from this NEB transaction will be used for financing selected loan projects, which are considered to benefit the environment, a core element in the mission of NIB.

For more information on NIB Environmental Bonds, click here.

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 S&P Global Ratings and Moody’s.

For further information, please contact

Jens Hellerup, Head of Funding & Investor Relations, +358 9618 11401, 
jens.hellerup@nib.int
Angela Brusas, Director, Funding & Investor Relations, +3589618 11403, 
angela.brusas@nib.int
Alexander Ruf, Director, Funding & Investor Relations, +358 9618 11402, 
alexander.ruf@nib.int