Press release -
The funding forecast for 2020 is revised
Kommuninvest has revised its funding forecast for 2020. The need for long-term funding, with maturities longer than one year, is now expected to amount to approximately SEK 150-170 billion. This is an increase by SEK 10 billion from the first forecast for this year.
The revised forecast is, like before, based on sub-forecasts for the renewal of maturing loans, expected new lending, customer demand for different maturities as well as the size and financing of the liquidity reserve at the end of the year.
The main reason for this upward revision is that the demand from municipalities and regions since the start of the Corona-related crisis has been very strong. Lending volumes have been higher than in the original forecast. The assessment is now that this demand will persist for the foreseeable future.
Funding operations will, depending on prices and market conditions, be carried out in the company's strategic markets: SEK, USD and EUR. Green Bonds will be a part of these operations.
“To see municipalities and regions turning to us to such a large extent is, at the heart of it, a very positive thing. This is exactly what we are here for. At the same time, it should be underlined that the uncertainty in assessing lending growth is now higher than usual. It is still very difficult to predict the long-term economic effects of the crisis", 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, 290 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.
