Press release -
Kommuninvest issues USD 600 million bond
Kommuninvest i Sverige AB, rated AAA/Aaa, has successfully issued a long 2-year USD 600 million RegS/144A transaction. The notes, which mature on the 1 June 2020, pay a semi-annual coupon of 2.50 percent and was issued at a spread of mid-swaps flat, which equated to a spread of some 31bps over US Treasury 2.25% due 29 February 2020.
The final orderbook exceeded USD 900 million from 26 accounts, compromised principally of central banks & official institutions and bank treasuries.
Kommuninvest continues to grow as a result of a larger market share and the increased welfare investments by Swedish municipalities and county councils. Of the SEK ~600 bn in municipal sector external loan debt, more than half is today financed via Kommuninvest. Kommuninvest forecasts a total of SEK 85-100 billion in long-term funding in 2018.
For further information, see separate Press Points.
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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 of around SEK 360 billion (USD ~41 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.
