KommuneKredit off to a good start with 5Y USD benchmark

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KommuneKredit off to a good start with 5Y USD benchmark

On Thursday 21 January, KommuneKredit priced a USD 1 billion benchmark issue with the tightest spread to date. The issue is a good omen for 2021 during which KommuneKredit expects to issue bonds for more than DKK 35 billion in strategic core markets in EUR, USD and DKK.

The order books closed with orders of more than USD 2.4 billion, when KommuneKredit priced its first benchmark of the year – USD 1 billion with a 5-year maturity. The mandate was officially issued on Wednesday 20 January and interest was great from the start – especially from central banks world-wide who bought 40% of the issue.

The transaction extends KommuneKredit’s USD-curve with a new 5-year point. Final pricing was 3 bps tighter than initial pricing which is the result of a strong investor interest combined with favourable market conditions.

KommuneKredit launched the issue in collaboration with lead managers: BofA Securities, BMO Capital Markets, Daiwa Capital Markets and RBC Capital Markets.

First venture signals good start for 2021

KommuneKredit has had a good start to the year in terms of raising the funding necessary to offer loans to our customers. This first issue is part of the associations strategy to underpin access to USD-investors – especially central banks, official institutions, supranationals and banks.

For further details on the issue read more in related file.

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Jens Lundager

Jens Lundager

Press contact CEO +45 3369 7622

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Press Points 5Y_January 2021
  • Press Points 5Y_January 2021
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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.

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DK-1175 Copenhagen K
Denmark
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