Press release -
Kommuninvest issues 2-year USD benchmark bond
Kommuninvest, the Swedish local government debt office, has issued USD 1.25 billion in a 2-year Reg-S/144a note for its USD benchmark programme.
The new bond matures on 29 May, 2021 and was issued with a yield of 2.35 percent, 6 basis points above mid-swaps and 12 basis points over corresponding US Treasuries. This is the tightest spread to US Treasuries for any Kommuninvest US dollar benchmark ever.
Christian Ragnartz, Head of Debt Management at Kommuninvest, commented:
- We are pleased with the good reception for this USD transaction, and particularly the spread level versus US Treasuries. It is an acknowledgement for Kommuninvest as an issuer and will support cost-effective financing for Kommuninvest's members.
After the transaction, Kommuninvest has twelve outstanding benchmark bonds in USD, maturing annually from 2019 to 2022. The total outstanding volume in the USD benchmark programme amounts to USD 15 billion.
Kommuninvest's current forecast for long-term borrowing for 2019 is SEK 100-120 billion, with expectations of an outcome in the higher part of the interval. With the recent USD transaction, a total of SEK 61 billion (USD 6.3 billion) has been funded to date. For further information about the transaction please consult the attached Press Points.
More information
Further information about the USD benchmark programme can be found attached to this release
Contacts
Christian Ragnartz, Head of Debt Management, tel: +46 706 07 38 34, e-mail: christian.ragnartz@kommuninvest.se
Marcus Waineby, Senior Funding Manager, tel: +46 706 96 77 69, e-mail: marcus.waineby@kommuninvest.se
Björn Bergstrand, Head of Media Relations, tel: +46 (0)10 470 87 31 alt. +46 70 886 94 76, e-mail: bjorn.bergstrand@kommuninvest.se
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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, 289 municipalities and counties/regions are members of this voluntary cooperation. With total assets exceeding SEK 400 billion (USD ~41 billion), Kommuninvest is the largest lender to the local government sector and one of the ten largest credit institution in Sweden. The head office is located in Örebro.
