Nordic Investment Bank (NIB) - GlobalCapital · Supranationals - Europe 238 EuroWeek Financing...
Transcript of Nordic Investment Bank (NIB) - GlobalCapital · Supranationals - Europe 238 EuroWeek Financing...
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