Press release -
Kommuninvest launches K2311, a new bond in the Swedish Benchmark Programme
Kommuninvest will shortly, market conditions permitting, issue a new bond under its Swedish Benchmark Programme. The bond, labelled K2311, will mature on 13 November 2023. Kommuninvest targets benchmark status for K2311, equivalent to at least SEK 3 billion outstanding on the first day of trading. Final terms are to be established shortly.
Kommuninvest today accounts for approximately 50 percent of the municipal sector’s total loan debt, with a significant proportion of its funding in the Swedish Benchmark Programme. Total outstanding volume amounts to approximately SEK 170 billion in eight bonds. The Swedish programme is expected to continue to grow for a long time and the ambition is to be a natural complement the Swedish government bonds. The growth rate is determined by members’ needs, which, however, are expected to remain moderate in relation to GDP, and whether funding levels in Swedish krona are deemed attractive relative to funding in US dollars.
Pelle Ekestubbe, Senior Portfolio Manager at Kommuninvest and responsible for the Swedish Benchmark Programme, comments:
– Since the launch in 2010, our Swedish krona benchmark programme has become Kommuninvest’s primary funding programme. We take a long-term view and have a clear focus on the liquidity of our bonds. As of next week, Kommuninvest’s bonds will be included in the broadest bond index, Nasdaq OMRXALL, this is a milestone and an important interim target.
Kommuninvest’s ambition, like the Swedish National Debt Office, is to be transparent and predictable regarding its funding activities. Furthermore, Kommuninvest actively works to broaden the investor base.
Kommuninvest continues to grow as a consequence of increased market share and increased investments in welfare by municipalities, county councils and regions. Today Kommuninvest funds more than half of the municipal sector’s total debt of over SEK 600 billion. Kommuninvest expects a total of borrowing SEK 85-100 billion in long-term borrowing during the year.
Kommuninvest’s Swedish benchmark bonds are included in Nasdaq’s bond index OMRXALL from March 12, 2018.
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, 288 municipalities and county councils/regions are members of this voluntary cooperation, out of a total of 310 Swedish local governments. With total assets of around SEK 360 billion (USD ~41 billion), Kommuninvest is the largest lender to the local government sector and the sixth largest credit institution in Sweden. The head office is located in Örebro.
