Press release -
KommuneKredit issues new GBP benchmark combined with a buyback
KommuneKredit announced on 16 April 2018 a new fixed rate GBP benchmark with maturity in October 2022 combined with a buyback in KommuneKredit’s GBP bond with maturity in December 2018. The 3 banks NatWest, Nomura and RBC were mandated as joint lead managers, and RBC was appointed billing and delivery bank for the buyback. The bond issue was offered with an price indication of UK Treasuries + 35 bps and a minimum issuance amount of GBP 250m.
The orders for the new issue and the buyback build nicely on 17 April 2018, and at 10.15 am Copenhagen time the combined orderbook for the new issue and switches were over GBP 250m, where the price was tightened to UK Treasuries + 34 bps. There was a good number of buyback orders in the book and around noon, Copenhagen time, the combined book of the new issue and switches totalled over GBP 500m, and the book was closed. In total, KommuneKredit issued GBP 350m in the new bond and bought back GBP 147m in the December 2018 bond. This resulted in a buyback percentage of approx. 30%.
The distribution on geography and investor type can be found in the attached press release.
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KommuneKredit is an association, whose purpose is to provide lending to municipalities and regions and companies with a 100% municipal guarantee.
The association is the municipalities and regions own credit institution and exist solely for our clients.
