Press release -
Investors welcome Kommuninvest’s second USD benchmark for the year
Kommuninvest i Sverige AB, rated AAA/Aaa, issued its second USD benchmark transaction for the year on Wednesday. The Swedish local government debt office printed USD 1 billion in 3-year Reg-S/144a notes. The notes, which mature on 1 March 2021, pays a semi-annual coupon of 2.875% and was issued at a spread of plus 20.7bps versus 3-year US Treasuries, equivalent to mid-swaps + 6bps.
Books were closed within 1.5 hours of opening, with final orders in excess of USD 2 billion and participation from more than 50 accounts, primarily central banks & official institutions as well as bank treasuries.
Tobias Landström, Deputy Head of Debt Management at Kommuninvest, commented:
- We are very pleased with the outcome of this transaction, and particularly with the final order book exceeding 50 accounts including a large number of central banks and bank treasuries. We appreciate the strong support for Kommuninvest bonds from core SSA buyers from across the globe
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, half is today financed via Kommuninvest. Kommuninvest forecasts a total of SEK 85-100 billion in long-term funding in 2018, up from SEK 76 billion in 2017.
For further information, see separate Press Points.
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.
