Kommuninvest issues USD 1,25 billion in new benchmark bond

Press release -

Kommuninvest issues USD 1,25 billion in new benchmark bond

Kommuninvest today issued USD 1,25 billion in a new bond within the USD benchmark programme.

The bond, which matures on 16 February 2024, was issued with a bid-to-cover ratio of 2,6. It was priced 19 basis points above mid-swaps and 26,25 basis points above corresponding US Treasuries.

This was Kommuninvest's second USD issue in a relatively short period of time. The latest one, which was slightly smaller and had a maturity of 2 years, took place on 23 April. The USD market, one of Kommuninvest's three strategic borrowing markets, is now characterized by high demand and a pricing that is well in line with the SEK market.

“This was yet another good issue in the USD market. The order book was both large and diversified, involving 93 investors. Given the high investor interest, pricing could be tightened by 3 basis points. The positive dynamics of the USD market now gives us important advantages in our funding operations, says Christian Ragnartz, Head of Debt Management at Kommuninvest.

Including this issue, Kommuninvest has so far borrowed around SEK 77 billion in 2020. The borrowing forecast for this year is SEK 150-170 billion.

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: +46 705 86 78 51, e-mail: tobias.landstrom@kommuninvest.se

David Ljung, Head of Communications, tel: +46 73 068 45 45, e-mail: david.ljung@kommuninvest.se

Topics

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, 291 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.

Contacts

Victoria Preger

Victoria Preger

Press contact Chief Communication Officer +46 702 66 87 26

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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 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.

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Sverige
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