Chicago, Jan. 11 – DNB Bank ASA sold its first green bond (Aa2/AA-) on Tuesday, according to information from a market source.
The €1 billion senior preferred notes start with a 0.375% interest rate until the optional redemption date on Jan. 18, 2027. After that time the rate will convert to a floating rate based on mid-swaps plus a margin.
The notes priced at 99.748 discount to yield 0.426%, or mid-swaps plus 32 bps.
The notes mature on Jan. 18, 2028.
Final order books were above €1.5 billion, coming in from a €1.7 billion peak order book as the spread was being set. Initial price talk was in the mid-swaps plus 50 bps area.
Joint bookrunners are BNP Paribas, DNB Markets, Deutsche Bank, HSBC and ING.
DNB Markets and ING are the joint green bond structuring advisers.
Proceeds will be used for eligible projects under the issuer’s green finance framework.
Listing will be on Euronext Dublin.
The financial services company is based in Oslo.
| Issuer: | DNB Bank ASA
|
| Amount: | €1 billion
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| Issue: | Senior preferred green notes
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| Maturity: | Jan. 18, 2028
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| Bookrunners: | BNP Paribas, DNB Markets, Deutsche Bank, HSBC and ING
|
| Green advisers: | DNB Markets and ING
|
| Coupon: | 0.375% starting rate; converts to mid-swaps plus margin on Jan. 18, 2027
|
| Price: | 99.748
|
| Yield: | 0.426%
|
| Spread: | Mid-swaps plus 32 bps
|
| Call features: | Optional call on Jan. 18, 2027 at par
|
| Trade date: | Jan. 11
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| Settlement date: | Jan. 18
|
| Ratings: | Moody’s: Aa2
|
| S&P: AA-
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 50 bps area
|
| ISIN: | XS2432567555
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