NIB’s funding is an Olympic pursuit

As the world’s elite athletes showcased their capabilities at the 2024 Olympic Games, the Nordic Investment Bank (NIB) demonstrated its own prowess in the financial arena. Just as the Games brought together competitors from across the globe, NIB’s bond issues have attracted investors worldwide in the pursuit of sustainable growth and the development of the Nordic-Baltic region.

On the starting blocks: A long-term strategy

Much like a top athlete’s rigorous training schedule, a well-prepared strategy is key for success in the competition for investors’ funds. Like an athlete’s dedication to excellence, NIB’s commitment to fund projects which meet strict long-term sustainability criteria sets the stage for successful bond issuances. As in Olympic running competitions, to succeed in the race, it is essential to get off the starting blocks at the right pace with the right product. However, even when funding covers more than half the distance—EUR 6.5 billion—it will be the final effort that decides the success at the finish line of around EUR 9 billion at year-end.

Setting the pace: Funding highlights

In the spirit of the Olympic Games, where records are celebrated, NIB has achieved some milestones of its own. The Bank successfully launched several benchmark bonds, starting with green bonds in Norwegian Kroner (NOK 2.5bn five-year bond), in EUR (EUR 500 million seven-year bond) and just before halfway in Swedish Kronor (SEK 1.25 billion five-year bond), attracting a diverse range of ESG-conscious investors. However, it is the annual five-year USD benchmark bond that represents the prominent hundred-metre sprint—the USD 1.5 billion bond placed at the end of February collected orders of more than USD 4.5 billion, a “personal best” for NIB.

Finally, NIB added a new discipline to its funding mix by selling a conventional EUR 500 million three-year bond. Although new to the competition, the bank scored well: the bond issue size was covered more than twice by orders, and pricing was well in line with some well-established issuers in this discipline.

These bonds represent the trust and confidence investors place in NIB.

The hurdles: Stay focused on the track

Olympic hurdlers must possess speed, agility and precision to overcome the obstacles on the track. Funding activities need the same qualities to successfully cross the finishing line at year-end. After a strong start in the race, more hurdles will need to be crossed to fund an additional EUR 2.0 billion to 3.0 billion: one more benchmark bond in either USD or EUR, issuance in green format, and some intermediate fast sprints in the format of private placements. Success will not only depend on overcoming the obstacles on the track—headwinds in the form of shifts in central bank policies, uncertainty about the state of the economic cycle, political events and violent conflicts will require the runner’s full attention if they are not to stumble.

The finish line: Impactful outcomes

The true measure of success at the Olympic Games is not just the medals won but the legacy. Similarly, the impact of NIB’s funding activities extends beyond financial returns. Investors can take pride in their contribution to a sustainable future, knowing that their investment decisions support a winning strategy that delivers both financial and societal returns. For NIB, every bond issue is a race towards a more sustainable and prosperous Nordic-Baltic region. And just like the Olympians, NIB is committed to pushing each funding activity to be a step towards a brighter, more sustainable future with our investors.