Kommuninvest issues USD 1.25 billion in new benchmark bond
Kommuninvest today raised USD 1.25 billion in a new benchmark bond. This was the third USD transaction of the year. Interest for the new bond, maturing on 2024-07-03, was strong.
Kommuninvest today raised USD 1.25 billion in a new benchmark bond. This was the third USD transaction of the year. Interest for the new bond, maturing on 2024-07-03, was strong.
The report "Local Government Debt Management", which offers a picture of the funding of the total debt of the municipal sector in Sweden, has been updated. The average interest rate, including derivatives, of the total debt increased from 0.85 percent in the fourth quarter 2021 to 0.88 percent in the first quarter 2022. This is the first increase ever recorded in a time series that began in 2015.
Kommuninvest today issued USD 1 billion in a new bond, maturing on 2025-03-01, under the USD Benchmark Programme. Once again, demand in the market was solid. The order book was large and well diversified, with a clear presence of leading global investors.
The Swedish Government wishes to introduce a compensation to the municipal sector for the extra costs caused by the recently launched risk tax. Kommuninvest welcomes the proposal, but underlines that it is very important that the Government also takes the next step and ensures that municipal collaboration through Kommuninvest is no longer taxed after 2022.
Kommuninvest has updated the funding forecast for 2022. The long-term funding (maturities longer than one year) is now expected to be SEK 125-145 billion.
The positive trend for Kommuninvest's green financing continued in 2021. According to the Green Bonds Impact Report, December 2021, which is presented today, the 491 green investment projects that are financed by Kommuninvest’s Green Bonds together contribute to around 603,000 tonnes annually in avoided or reduced CO2 emissions.
Kommuninvest today raised EUR 500 million in a new Green Bond maturing on 2029-09-01. This was the 15th green transaction so far. This was also the first bond issued in EUR since Kommuninvest's decision in 2019 to establish three strategic funding markets: SEK, USD and EUR.
Kommuninvest i Sverige AB today publishes its year-end report for 2021. In a pandemic year characterized by gradual economic recovery, Kommuninvest secured steady and sustainable growth in its lending.
Kommuninvest today raised USD 1 billion in a new bond, maturing on 2024-05-08, under the USD Benchmark Programme. SOFR, instead of Libor, was for the first time used as reference rate.
The digital report "Local Government Debt Management", which is updated on a quarterly basis, offers a picture of the structure and conditions of the funding of the total debt of the municipal sector. The report has now been updated. The average interest rate, including derivatives, for new transactions increased from 0.25 percent in the third quarter to 0.36 percent in the fourth quarter.
Kommuninvest has established its funding forecast for 2022. Long-term funding (maturities longer than one year) is expected to be SEK 115–135 billion.
The Riksdag today decided on the Government's bill on a so-called risk tax. The Riksdag states that municipal collaboration through Kommuninvest shall no longer be targeted by the tax from 2023 and that the municipal sector during 2022 shall be compensated for the extra costs. Kommuninvest expects the Government to quickly and efficiently create solutions to make this happen.
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 more than SEK 600 billion (USD ~55 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.