Press release -
Kommuninvest updates 2018 funding forecast
Kommuninvest, the Swedish local government funding agency, has published an updated funding forecast of SEK 110-125 billion for the 2018 calendar year. The previous forecast for funding longer than 1 year duration was SEK 85-100 billion (USD 10-11 billion). The forecast is based on the expected new lending, renewal of maturing loans and renewals of maturing outstanding borrowings, as well as on an assessment of the size of the liquidity reserve at the end of 2018.
The revised funding requirement is a result of greater demand for new loans from Kommuninvest's members and customers. In addition to generally good demand, demand for longer maturities has increased. To date, Kommuninvest has borrowed the equivalent of SEK 87 billion in long-term funding.
Long-term funding will continue to have a focus on benchmark funding in SEK and USD, including green funding, as well as Uridashi funding in the Japanese market.
Of the SEK 600 billion in municipal sector external loan debt, half is today financed via Kommuninvest. Kommuninvest continues to grow as a result of a larger market share and the increased welfare investments by Swedish municipalities and county councils/regions.
For further information
Christian Ragnartz, Head of Debt Management, tel: +46 706 073 834, e-mail: christian.ragnartz@kommuninvest.se
Tobias Landström, Deputy Head of Debt Management, tel: +46 10 470 88 83, email: tobias.landstrom@kommuninvest.se
Björn Bergstrand, Head of Media Relations, +46 708 869 476, 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 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.
