21 Jan 2010

NIB’s 3-year USD 1bn global benchmark now issued

On 20 January, NIB priced a USD 1 billion 3-year global benchmark bond. This is the Bank’s first public benchmark this year.

Due 28 January 2013, the deal pays a semi-annual coupon of 1.625% and has an issue price of 99.752% to give a spread of +28.4 basis points the 1.375% US Treasury due January 2013, equivalent to 5bps under the 3-year USD Midswaps rate. Citi, Deutsche Bank, HSBC and J.P.Morgan were the joint lead managers, and Credit Suisse, Nomura and Nordea co-lead managers, for the transaction.

The transaction was oversubscribed in less than 3 hours and finally reached nearly USD 1.3 billion with over 55 investors participating. All geographical areas were well represented in the book, with a fairly even split between the Americas, EMEA and Asia. Central banks and official institutions accounted for 79% of allocations.

“NIB is happy with the transaction. We’ve achieved our goals, including the pricing at the tight end of guidance, having built a well oversubscribed orderbook of high quality accounts. It is an excellent start to what is expected to be a challenging 2010,” says Jens Hellerup, Director, Deputy Head of Funding and Investor Relations at NIB.