Nordic Investment Bank recently entered a cross-currency interest-rate swap with Citibank in Taipei to convert the proceeds of a TWD8.5 billion (USD203 million) bond issue into a floating rate U.S. dollar-denominated liability. In the swap, NIB pays LIBOR-floating U.S. dollars and receives fixed Taiwan dollars, said Kari Kukka, v.p. and head of funding at NIB in Helsinki. Kukka declined to reveal the rates. The Nordic bank decided to top up what was originally a TWD7 billion issue with a further TWD1.5 billion issue last week to meet strong investor demand.
The bond offering consists of a three-year 3.55% tranche and a five-year 3.65% tranche, said an official close to Citibank. The initial TWD7 billion was swapped by Citibank and a smaller counterparty, added Kukka. He declined to name the other counterparty.
