Supranationals - Europe

238 EuroWeek Financing supranationals and agencies

Nordic Investment Bank (NIB)Rating Aaa, AAA, NR

Johnny ÅkerholmPresident & CEO

Nils E EmilssonFirst vice-president, head of lending

Lars EibeholmVice-president, head of treasury & CFO

KEy officiaLs

The Nordic Investment Bank (NIB) promotes sustainable growth of its member countries — Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden — by providing long-term financing to projects that strengthen competitiveness and enhance the environment.

The bank has lending operations both in its member countries and in emerging markets in: Africa and the Middle East; Asia; Europe and Eurasia; and Latin America.

NIB is headquartered in Helsinki and is owned by its member states.

ovErviEw

Minimum size: generally $5m

structures: flexible

currencies: all

privatE pLacEMENt poLicy

Source: Markit

bp

3-Au

g-200

9

3-Se

p-200

9

3-Oct-

2009

3-Nov

-200

9

3-Dec

-200

9

3-Jan

-201

0

3-Fe

b-201

0

3-Mar-

2010

3-Ap

r-201

0

3-May

-201

0

3-Ju

n-201

0

3-Ju

l-201

0

3-Au

g-201

0

3-Se

p-201

0

3-Oct-

2010

3-Nov

-201

0

3-Dec

-201

0

3-Jan

-201

1

3-Fe

b-201

1

3-Mar-

2011

-20 -15 -10

-5 0 5

10 15 20

assEt swap sprEad2.625% Usd oct 2014

*Estimated. **Forecast. Source: NIB

€ bn

0 0.5

1 1.5

2 2.5

3 3.5

4 4.5

5

2005

2006

2007

2008

2009

2010

*

2011

**

Gross boNd issUaNcE

2010 data not final. Source: NIB

Americas 14%

Asia (excl Japan) 36%

Australia & NZ 10%

Europe 20%

Japan 14%

Other 6%

iNvEstor basE by rEGioN (2010)

2010 data not final. Source: NIB

Plain vanilla 78%

Structured 22%

issUaNcE by typE (2010)

2010 data not final. Source: NIB

AUD 16%

BRL 9%

NOK 5%

NZD 5%

SEK 4%

USD 59%

Other 2%

issUaNcE by cUrrENcy (2010)

2010 data not final. Source: NIB

%

Asset managers

20%

Central banks/ official

institutions 34%

Pension & insurance

16%

Retail 14%

Bank 15%

Corporate 1%

iNvEstor basE by typE (2010)

Supranationals - Europe

Financing supranationals and agencies EuroWeek 239

risk weighting (basel ii): 0%

Guarantee: More than 95% of callable capital is pledged by AAA-rated member states. Member states provide explicit guarantees of NIB’s international project investment loan and environmental investment loan facilities, which lend to borrowers outside the member countries.

risK wEiGhtiNG / GUaraNtEE

*Data at August 31, 2010. Source: NIB

€ bn

0

5

10

15

20

25

30

2005

2006

2007

2008

2009

2010

*

totaL assEts

*Data at August 31, 2010. Source: NIB

€ bn

5.3

5.4

5.5

5.6

5.7

5.8

5.9

6.0

2005

2006

2007

2008

2009

2010

*

totaL capitaL

It's assumed that 30% of the callable transactions will be called at first call and the rest at next call dateData at December 31, 2010. Source: NIB

%

0

5

10

15

20

25

30

2011

20

12 20

13

2014

20

15

2016

-2017

2018

-2020

2021

-2025

2026

-

oUtstaNdiNG issUaNcE by MatUrity

Data at December 31, 2010. Source: NIB

%

0 2 4 6 8

10 12 14 16 18 20

2011

2012

2013

2014

2015

2016

-201

7

2018

-202

0

2021

-202

5

2026

-

oUtstaNdiNG LoaNs by MatUrity

Data at November 2010. Source: NIB

%

0 5

10 15 20 25 30 35

Manufa

cturin

g

Energ

y and

Wate

r

Trans

port

and

com

mun

icatio

n

Trade

and S

ervice

Bank

ing an

d fin

ance

Other

oUtstaNdiNG LoaNs by typE

rank Lead Manager amount $m No of issues

% share

1 HSBC 1,153 9 22.23

2RBC Capital Markets

878 5 16.92

3 Deutsche Bank 772 9 14.89

4 JPMorgan 735 8 14.17

5 Credit Suisse 391 3 7.55

6 Nomura 371 2 7.16

7 Danske Bank 225 1 4.33

8Daiwa Capital Markets

213 1 4.1

9 ANZ 161 1 3.1

10 BNP Paribas 100 1 1.93

subtotal 4,999 31 96.36

total 5,187 42 100

Source: Dealogic (March 16, 2010 to March 15, 2011)

top booKrUNNErs

pricing date January 20, 2011

value $1bn

Maturity date March 15, 2016

coupon 2.25%

spread to swaps 33bp

bookrunners Deutsche Bank, HSBC, JPMorgan

pricing date January 11, 2011

value £300m

Maturity date December 10, 2013

coupon 1.625%

spread to benchmark 50bp over Gilts

bookrunners Deutsche Bank, HSBC

pricing date October 26, 2010

value A$325m

Maturity date April 6, 2015

coupon 6%

spread to swaps 33bp

bookrunners ANZ, RBC

Source: Dealogic

rEcENt dEaLs

standard & poor’s

AAA, stable outlook

strengths•RobustsupportofNIBmembercountries•Strongassetquality•Ampleliquidity•Soundfinancialandriskmanagement

weaknesses•Relativelyhighleverageanddebtratios•Comparativelyhighregionalconcentrationofloan

portfolio

The stable outlook reflects S&P’s expectation that despite the temporary negative impact of the current international financial crisis, the bank’s very strong asset quality and financial profile will continue over the medium term, safeguarded by solid membership support and cautious credit policies, all of which are key factors underpinning the bank’s extremely strong financial capacity to honour obligations as they fall due. However, were leverage to increase significantly above current expectations, or in the unlikely event of a weakening of support from the NIB’s highly credit-worthy shareholders, or should impaired loans increase significantly above historically low levels, the rating could come under downward pressure.

KEy rEcENt ratiNG aGENcy coMMENtary