Press release -
Reduced funding forecast
Kommuninvest has revised its funding forecast for 2020. The need for long-term funding, with maturities longer than one year, is expected to be approximately SEK 150-160 billion. This is lower than the previous forecast of SEK 150 to 170 billion.
The new forecast is built on expected renewal of maturing loans, new lending, customer demand regarding different maturities as well as the size and financing of the liquidity reserve at the end of the year.
The main reason for the revised forecast is slightly reduced lending growth. Lending volumes, which during the first two months of the Corona crisis were very high, have since then returned to normal or lower levels.
Funding operations will, depending on prices and market conditions, be carried out in the company's strategic markets: SEK, USD and EUR. A small part will be green funding.
- After the initial period of market turbulence, municipalities’ and regions’ borrowing quite quickly returned to more normal levels. At the same time, it should be underlined that the uncertainty of the forecast, because of the Corona crisis, continues to be higher than usual, says Christian Ragnartz, Head of Debt Management at Kommuninvest.
For further information
Christian Ragnartz, Head of Debt Management, tel: +46 706 07 38 34, e-mail: christian.ragnartz@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.
