Press release -
Kommuninvest issues USD 1 billion 3-year benchmark
Kommuninvest i Sverige AB, rated AAA/Aaa, issued its third USD benchmark transaction for the year on Tuesday. The Swedish local government debt office printed USD 1 billion in 3-year Reg-S/144a notes. The notes, which mature on 16 November 2021, pays a semi-annual coupon of 3.00% and was issued at a spread of 19.4bps over US Treasuries 2.875% due September 2021, equivalent to mid-swaps + 3bps. This is one of the lowest levels against both swaps and US Treasuries that Kommuninvest has ever has experienced for a three-year bond.
The order book approached USD1.3bn from over 50 accounts, primarily central banks & official institutions as well as bank treasuries.
| Bond terms | |
| Issuer | Kommuninvest i Sverige AB |
| Size | USD 1 billion |
| Coupon | 3.000 % semi-annual |
| Maturity | 16 November 2021 |
| Price | 99,799% |
| Yield | 3,103% |
| Spread versus USD mid-swaps | +3 bps |
| Spread versus US Treasuries | +19,4 bps |
| Lead managers | BofAML, BNP Paribas, HSBC, JP Morgan |
Marcus Waineby, Senior Funding Manager at Kommuninvest, commented:
- This was a solid outcome for Kommuninvest. Investor interest was geographically widespread, including strong participation from central banks, official institutions, bank treasuries and fund managers.
For further information, see separate Press Points attached to this release.
Contact information
Tobias Landström, Deputy Head of Debt Management, tel: +46 705 86 78 51, e-mail: tobias.landstrom@kommuninvest.se
Marcus Waineby, Senior Funding Manager, tel: +46 706 96 77 69, e-mail: marcus.waineby@kommuninvest.se
Björn Bergstrand, Head of Media Relations, +46 708 86 94 76, e-mail: bjorn.bergstrand@kommuninvest.se
Topics
Kommuninvest is a municipal cooperation for efficient and sustainable financing of housing, infrastructure, schools, hospitals etc. Together, we get better loan terms than each one individually. Since its inception in 1986, the Kommuninvest collaboration has helped lower the local government sector’s borrowing costs by many billion kronor. Currently, 288 municipalities and county councils/regions are members of this voluntary cooperation, out of a total of 310 Swedish local governments. With total assets exceeding SEK 400 billion (USD ~45 billion), Kommuninvest is the largest lender to the local government sector and the sixth largest credit institution in Sweden. The head office is located in Örebro.
