Press release -
Kommuninvest raises USD 1 billion in new bond
Kommuninvest today issued USD 1 billion in a new bond. This was the third transaction of the year under the USD Benchmark Programme.
The new bond, which matures on 2023-09-15, had an order book of approx. USD 1.4 billion and included 31 investors. The bond was priced 1 basis point above mid-swaps and 15.5 basis points above corresponding US Treasuries.
Acting in the US market remains favourable for Kommuninvest. The conditions are about as good as in the SEK market. In the company’s third strategic market, EUR, prices are still relatively high.
– I am pleased to see that we are repeatedly met by such broad interest in the US market. The order book was well diversified both in terms of investor type and geographical distribution. Our focus is to secure as good terms as possible for the financing of the extensive investments that municipalities and regions now make in the Swedish welfare system, says Tobias Landström, Deputy Head of Debt Management at Kommuninvest.
Including this transaction, Kommuninvest has so far in 2021 borrowed around SEK 55 billion. The funding forecast for this year is SEK 120–140 billion.
Please find attached more detailed Press Points.
For further information
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 the start in 1986, the Kommuninvest collaboration has helped reduce the local government sector’s borrowing costs by many billion SEK. Currently, 292 municipalities and regions are members of this voluntary cooperation. With a balance sheet total exceeding SEK 525 billion (USD ~62 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.
