Press release -
Kommuninvest issues 3-year USD benchmark bond
Kommuninvest, the Swedish local government debt office, has issued USD 1.25 billion in a 3-year Reg-S/144a note for its USD benchmark programme.
The new bond matures on 24 Oct 2022 and was issued with a yield of 1.625 percent, 15 basis points above mid-swaps and 10.8 basis points over corresponding US Treasuries. The investor interest in this transaction was significant. With an orderbook of USD 3.2 bn Kommuninvest chose to tighten pricing with two basis points against mid-swaps and print USD 1.25 bn.
Christian Ragnartz, Head of Debt Management at Kommuninvest, commented:
- We are pleased with the good reception for this USD transaction, and particularly the broad investor demand. More than 70 investors were involved in the transaction, which 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 14.6 billion.
Kommuninvest's current forecast for long-term borrowing for 2019 is SEK 120-140 billion. With the recent USD transaction, a total of SEK 103 billion (USD 10.7 billion) has been funded to date. For further information about the transaction please consult the attached Press Points.
For further information
Christian Ragnartz, Head of Debt Management, tel: +46 706 07 38 34, e-mail: christian.ragnartz@kommuninvest.se
Tobias Landström, Deputy Head of Debt Management, tel +46 70 586 78 51, e-mail: tobias.landstrom@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 450 billion (USD ~47 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.
