When credit markets are as freaked out as they have been recently, even AAA names begin to divide into ‘quality’ and ‘hmmm’. Nordic Investment Bank (NIB) is undeniable quality, as it demonstrated more than once in September.
NIB is owned by the five Nordic states and, since 2005, the three Baltic states. They are lucky enough to receive dividends because, unlike most supranationals, the bank lends on a commercial basis with the intention of making profits. At the end of 2006, NIB had outstanding debt of about €13.6bn in 20 different currencies, having borrowed about €2.7bn during the calendar year.
