Press release -
Kommuninvest issues USD 1 billion in its first SOFR-referenced bond
Kommuninvest today raised USD 1 billion in a new bond, maturing on 2024-05-08, under the USD Benchmark Programme.
Investor interest was strong. The order book included over 38 investors, with bids totalling more than USD 1.5 billion. The bond was priced at 15 basis points above mid-swaps and 20.3 basis points above corresponding US Treasuries. SOFR, instead of Libor, was for the first time used as reference rate.
This was the first benchmark transaction in 2022. For Kommuninvest, the pricing in the USD market remains at approximately the same levels as in the SEK market.
– With an active presence of leading global investors, we today got off to a positive start of the year in the USD market. In our work to secure cost-efficient loans for investments in the municipal sector in Sweden, this strategic market continues to be an attractive source of financing, says Christian Ragnartz, Head of Debt Management at Kommuninvest.
Transaction details: Press Points
For further information
Christian Ragnartz, Head of Debt Management, tel: +46 706 07 38 34, e-mail: christian.ragnartz@kommuninvest.se
Marcus Waineby, Senior Funding Manager, tel: +46 10 470 88 63, e-mail: marcus.waineby@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 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 approx. SEK 550 billion (USD ~63 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.
