Capital markets  

Borrowing

The Bank's funding strategy is to be a leading IFI benchmark issuer and maintain a global investor base. Borrowing should be diversified into different currencies and markets.

The Bank undertook two successful global USD benchmarks during 2010. The first benchmark was a 3-year USD 1 billion global public issue priced in January. The transaction turned out to be the tightest supranational 3-year benchmark transaction in 2010.

In May, NIB launched and priced its second public USD benchmark. The 5-year USD 1.25 billion benchmark issue was NIB's largest 5-year USD benchmark to date.

The majority of NIB's 2010 funding was placed with investors located in Asia, excluding Japan, and accounted for 36% of total funding. Europe accounted for 18%, and Japan and the Americas for 14% each, while the remainder derived from varied sources worldwide. Central banks represented the biggest investor type with 30%, mainly through participation in NIB's issuance of the two global USD benchmark transactions (see figures 25 and 26).

The currency distribution was diversified with USD and AUD being the two largest funding currencies at 58% and 16% respectively. The distribution can be seen in figure 27.

In spring 2010, NIB priced a new 5-year AUD 600 million bond issue. Later in the year, NIB tapped the market with a further AUD 325 million.

In February 2010, NIB returned to the Kauri market with a new 4-year NZD 150 million transaction. In the Nordic currencies, NIB issued an 18-month SEK 1,500 million fixed-rate issue and two Norwegian crown fixed-rate issues totalling NOK 1,500 million.

NIB launched its first support bond for environmental projects addressed to the Japanese retail market. The proceeds from this environmental support bond were swapped back to euro and used to refinance specific climate change mitigation projects selected by NIB.

NIB continued to meet investors globally, updating them on developments and securing sufficient credit lines available for investment in NIB bonds. The investor relations activities included bilateral meetings, seminars arranged by intermediary banks, conferences, as well as networking with the capital market media.

The sum of the percentage shares may not total 100% due to rounding.