NIB prices its largest-ever Kauri bond at NZD 800 million
- The Nordic Investment Bank (NIB) priced an NZD 800 million five-year Kauri bond, the largest in the Bank’s history in the New Zealand dollar market.
- The transaction highlights NIB’s strong access to the Kauri market, providing funding capacity and smooth execution amid volatility in larger global funding markets.
On 2 October 2026, NIB priced a new NZD 800 million five-year fixed-rate Kauri bond. The bond was priced at mid-swaps +24bps, equivalent to NZGB May 2031 +16.35bps.
The transaction was launched on 1 October with an initial target size of NZD 500 million. Given the strong orderbook of NZD 1bn NIB increased the deal to NZD 800 million, making it the largest Kauri bond NIB has issued since entering the market in 2007.
“We had been following the Kauri market closely for some time, but the numbers had not quite worked for us. The recent downward revision of the New Zealand government borrowing programme created an opportunity for highly rated Kauri issuers, as investors sought additional supply of high-grade assets carrying a 0% risk weighting. Combined with supportive swap market conditions, this enabled NIB to issue NZD 800 million, further broadening our domestic investor base,” says Alexander Ruf, NIB Head of Funding and Investor Relations.
“NIB has maintained a presence in the Kauri market for many years and is a well-established name among New Zealand investors. The successful execution of our largest Kauri transaction to date reflects both the strength of these long-standing investor relationships and the benefits of a diversified funding strategy. In a week when conditions in some of the larger funding markets were more volatile, the Kauri market provided NIB with strong market access and smooth execution,” says Jens Hellerup, NIB Head of Treasury.
The bond carries a 4.65% fixed coupon, was priced at 99.907317%, and yields 4.671% on a semi-annual basis. Settlement is scheduled for 16 October 2026 with maturity on 16 October 2031.
Kauri bonds are issued by foreign entities in New Zealand dollars to local investors. NIB has been a consistent participant in the Kauri market, winning the KangaNews ‘Kauri Issuer of the Year’ award five times since 2007.
The joint lead managers for the transaction were ANZ, Commonwealth Bank of Australia and Westpac.
Proceeds from the transaction will be used in line with NIB’s mission to provide lending in support of the competitiveness, sustainability and resilience of its’ member countries.
Bond summary terms:
| Issuer: | Nordic Investment Bank (NIB |
| Rating: | Aaa (Moody’s) / AAA (S&P) |
| Format: | Kauri, Senior Unsecured, Wholesale |
| Issue amount: | NZD 800 million |
| Pricing date: | 2 October 2026 |
| Settlement date: | 16 October 2026 |
| Maturity date: | 16 October 2031 |
| Coupon: | 4.65%, Semi-Annual, Fixed (RBNZ Bond basis) |
| Issue price: | 99.907317% |
| Issue yield: | 4.671% (Semi-Annual) |
| Reoffer spread: | MS +24bps / NZGB May 2031 +16.35bps |
| Joint lead managers: | ANZ, Commonwealth Bank of Australia, Westpac |
| ISIN: | NZNIBDT016C5 |
Nordic Investment Bank (NIB) is the international financial institution of Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. NIB strengthens the competitiveness, sustainability, and resilience of the Nordic-Baltic region. The Bank is headquartered in Helsinki with a regional hub in Riga. NIB has the highest possible credit rating, AAA/Aaa, with S&P Global Ratings and Moody’s.
For further information, please contact:
Jens Hellerup, Senior Director, Head of Treasury
+358 9618 11401 | jens.hellerup@nib.int
Alexander Ruf, Head of Funding & Investor Relations
+358 9618 11402 | alexander.ruf@nib.int
Angela Brusas, Director, Funding & Investor Relations
+358 9618 11403 | angela.brusas@nib.int