Press release -
Kommuninvest adds Floating Rate Note (FRN) in Swedish kronor as a new product
Kommuninvest has chosen to add the possibility of issuing FRN in Swedish crowns. The auctions in the Swedish benchmark program continue as usual and FRN borrowing is seen as a complement to the auctions.
- Kommuninvest has over a longer period analyzed the Swedish FRN market and concluded that the borrowing form, with its flexible maturities and issue volumes, fits into Kommuninvest's benchmark strategy. We believe that an FRN strategy, where we tap outstanding issues, can appeal to both existing and new investors. During the update of the SEK benchmark program, we made it possible to issue FRN under the same documentation as the fixed benchmark bonds, which simplifies the procedure, says Tobias Landström Acting Head of Debt Management at Kommuninvest.
For further information:
Tobias Landström, Deputy Head of Debt Management, phone: +46 705 86 78 51
e-mail: tobias.landstrom@kommuninvest.se
Marcus Waineby, Funding manager, phone: +46 706 96 77 69
e-mail: marcus.waineby@kommuninvest.se
Victoria Preger, Chief Communication Officer, phone: +46-70-266 87 26e-mail: victoria.preger@kommuninvest.se
Topics
- Economy, Finance
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 the start in 1986, the Kommuninvest collaboration has helped reduce the local government sector’s borrowing costs by many billion SEK. Currently, 294 municipalities and regions are members of this voluntary cooperation. With a balance sheet total of more than SEK 600 billion (USD ~55 billion), Kommuninvest is the largest lender to the local government sector and one of the ten largest credit institutions in Sweden. The head office is located in Örebro.
