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.
Investor interest was strong. The order book included 64 investors. The bid-to-cover ratio was 2,4. The bond, which matures on 20 July 2022, was priced 2 basis points above mid-swaps and 9,4 basis points above corresponding US Treasuries.
This was Kommuninvest's fourth USD transaction in 2020. So far, a total of USD 4.75 billion has been issued within this programme. For Kommuninvest, the US market continues to present favourable conditions. The pricing is well in line with the SEK market.
- This was yet another successful transaction in the USD market. Thanks to the strong investor interest, pricing could be tightened by 3 basis points, to 2 basis points above mid-swaps. I am glad to see that we have such broad support from leading global investors, says Christian Ragnartz, Head of Debt Management at Kommuninvest.
Kommuninvest has so far borrowed around SEK 112 billion in 2020. Since the latest revision earlier in October, the funding forecast for this year is SEK 130 billion.
Please find attached more detailed Press Points.
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, 292 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.
