KommuneKredit issues succesful new 3Y USD 1bn benchmark

Press release -

KommuneKredit issues succesful new 3Y USD 1bn benchmark

On 12 March 2019, KommuneKredit launched a new USD benchmark transaction. The mandate for the new issue was announced in the market on Monday 11 March in conjunction with a switch and tender offer in two of KommuneKredit’s existing USD bonds maturing in August 2019 and January 2020 respectively.

Indications of interest grew over night to more than USD 2.3bn in new money and switches and books opened at mid-swaps +7 bps. As the issue size was capped at USD 1bn and orders stood strong at more than USD 2.8bn, books were closed at 9.00 am London time and the spread was fixed at mid-swaps + 7 bps.

The order book represents the largest-ever book for a KommuneKredit USD benchmark with a pricing of 1-1.5 bps. through fair value and spread over the 3Y Treasury of 15.5 bps.

The result of the switch and tender offer was a total buy-back of USD 449.7m in the August 2019 and January 2020 issues.

More than 65 investors participated in the issue with particularly strong participating from central banks, official institutions and bank treasuries.

Joint Lead Managers on the issue were: BMO Capital Markets, HSBC, RBC Capital Markets and TD Securities.

For further detail please read the Press Points.

KommuneKredit is an association, whose purpose is to provide lending to municipalities and regions and companies with a 100% municipal guarantee.

The association is the municipalities and regions own credit institution and exist solely for our clients.

Contacts

Jens Lundager

Jens Lundager

Press contact CEO +45 3369 7622

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Press Points
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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.

KommuneKredit
Kultorvet 16
DK-1175 Copenhagen K
Denmark
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