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KommuneKredit launches new 7-year CHF 225 million benchmark

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KommuneKredit launches new 7-year CHF 225 million benchmark

On Thursday 11th May, KommuneKredit priced a new CHF 225 million June-30 benchmark.

Thursday morning 11thMay KommuneKredit engaged BNP Paribas and Deutsche with the intent to issue minimum 100 million CHF. The orderbook officially opened at 09:55 CET with a guidance of SARON MS-16 area.

After strong investor interest the size was increased to 200 million at 10:50 and at 11:25 CET the final spread was set at SARON MS-16, the tightest foreign print in CHF this year, and the book closed at 225 million CHF.

At 12:20 CET, the transaction officially priced at SARON MS-16bp, equivalent to a reoffer yield of 1.590%.

In terms of geographical distribution, the transaction was allocated to more than 30 investors in Switzerland. In terms of investor type, Asset Managers were allocated 43% of the bonds, while the transaction also attracted strong participation from Bank Treasuries (32%).

Statement from KommuneKredit:

“We are pleased to reengage with the Swiss investors in their domestic market and to experience the strong interest in our name. This market has provided us good funding opportunities for many years.” Louise Rosentoft, Senior Funding & IR Manager


Lead Manager Quotes

“Congratulations to the KommuneKredit team for successfully launching their first CHF transaction of the year. KommuneKredit's ability to seize the right window and take advantage of favorable market conditions allowed them to capture a diverse investor demand and raise the largest transaction since 2015 while crystallizing an attractive funding level vs. their EUR curve.” Salma Guerich, SSA DCM, BNP Paribas

“Congratulations to the KommuneKredit team on a successful CHF outing. This marks the tightest CHF print from a foreign issuer year-to-date and KommuneKredit’s largest single tranche benchmark in the currency, testament to the issuer’s appeal to high quality Swiss investors. Deutsche Bank is proud to have participated in this transaction.” Lukas Lippenmeyer, SSA DCM at Deutsche Bank.

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Contacts

Jens Lundager

Jens Lundager

Press contact CEO +45 3369 7622

KommuneKredit

KommuneKredit is a Danish special-purpose credit institution, providing funding for the local growth and green transition in municipalities and regions across Denmark.

KommuneKredit is an association with sustainability at its core and a strong ESG profile. Our member base consists of all Danish municipal and regional authorities. Our guarantee structure and safe business model have secured us a premium credit rating (AAA) (Aaa).

That is why we can offer municipalities and regions instant and uncomplicated access to financing of projects large or small and at the lowest possible cost. With equal opportunities and terms for all – across the entire country.

That is how it has been since 1899, when KommuneKredit first disbursed a loan. And that is the way it is today, as our dedicated employees advise on and arrange more than 2,000 loans every year.

When investors buy our bonds, we can disburse loans for purposes ranging from energy renovation of a local sports centre to the purchase of a new eco-friendly hybrid ferry, or the establishment of more sustainable district heating systems across the country.

For the benefit of ordinary citizens, for our local communities, and for an even greener future.

KommuneKredit

Kultorvet 16
DK-1175 Copenhagen K
Denmark

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