Kommuninvest today publishes new Green Loan terms and an updated Green Bonds Framework. The new criteria are designed to promote the transition within the Swedish municipal sector, with the EU taxonomy as a central point of reference and with green financing requirements that work in practice.
Kommuninvest today issued SEK 3 billion (USD 0.28 billion) in a new bond under the Swedish Benchmark Programme.
Kommuninvest plans to, subject to market conditions, issue a new bond under the Swedish Benchmark Programme. The new bond, K3006, will mature on 2030-06-12. The first possible date of issuance is 24 of April.
The bond will be issued in an auction at Bloomberg’s auction platform (AUPD). The ambition is to issue SEK 3 billion.
– The Swedish Benchmark Programme continues to develop in a positi
Kommuninvest has today published its annual Green Bonds Impact Report. According to this year's report, the number of environmentally and climate-oriented investments financed with Green loans from Kommuninvest continues to increase. 606 municipal investment projects contribute to a total of approximately 668,000 tonnes in reduced CO2 emissions annually.
A group of the largest Nordic public sector issuers have published updated green bonds reporting guidance, introducing revisions to critical metrics for quantifying impact and new recommendations to reflect recent market developments. The Nordic Position Paper on Green Bonds Impact Reporting, now in its fourth edition, was first introduced in 2017.
Kommuninvest today raised another SEK 4 billion (USD 0.4 billion) in an outstanding Green Bond. The bond is denominated in SEK and matures on June 10th 2026.
The order book included ~ 15 investors, with a total interest of more than SEK 5,2 billion. The transaction was priced at 10 basis points above mid-swaps.
After this transaction, Kommuninvest has a total of over SEK 77 billion outstan
The quarterly report "Local Government Debt Management", which offers a picture of the structure and conditions of the total debt of the municipal sector in Sweden, has now been updated with new data for the third quarter 2023.
The report is built on Kommuninvest's lending and transactions registered by municipalities and regions, as well as their companies, in the debt management system KI Fin
Kommuninvest welcomes Region Västernorrland as a new member. This means that Kommuninvest Cooperative Society now has 295 members: 280 municipalities and 15 regions. Region Västernorrland's membership in Kommuninvest is strongly linked to the region's previously decided investment in the renovation and extension of the Regional Forensic Psychiatric Clinic in Sundsvall.
A group of Nordic public sector issuers have updated their Position Paper on Green Bonds Impact Reporting, originally launched in 2017. Due to a changed emission factor for electricity, the guidelines will see Nordic issuers report less CO2 impact from many of their financed green investments. They also include recommendations related to the forthcoming EU Green Bond Standard and the Taxonomy.
Kommuninvest, the Swedish local government debt office, increased its share of local government borrowings from 54 to 56 percent during 2019, according to its year-end report. Lending increased by 15 percent to SEK 407 (356) billion. Operating profit decreased to SEK 392.1 (752.5) million, explained partly by the members' decision to reduce lending margins.
Kommuninvest has issued SEK 3 billion in a new 6-year bond for its Swedish Benchmark Bond programme. The transaction was closed within minutes and met great demand.
The new bond, labelled K2602, matures on February 4, 2026 and was issued at a yield of 0.43 percent, about 67 basis points over the interpolated Swedish government bond curve and about 16.5 basis points above the reference mid-swap
Kommuninvest intends shortly to issue a new bond in its Swedish Benchmark Programme, maturing in February 2026. A large part of Kommuninvest's borrowing comes from this programme, where a total of SEK 231 bn is currently outstanding in nine bonds. Kommuninvest, which finances more than half of the municipal sector's total loan debt, expects to borrow a total of SEK 140-160 billion in 2019.
Kommuninvest has improved its ESG rating from Sustainalytics. In the latest evaluation Kommuninvest received an ESG Risk Rating score of 9.1, considered “negligible” according to Sustainalytics. This makes Kommuninvest part of the group of financial institutions with the lowest ESG risk rating from Sustainalytics.
Kommuninvest forecasts SEK 140– 160 billion in for long-term funding in 2020 (longer than one-year duration). This is higher than 2019 where an outcome close to SEK 135 billion is expected. The increase is mainly due to a larger volume of maturing loans and borrowings in 2020 compared to 2019. Kommuninvest will focus on benchmark funding in SEK, USD and EUR, with a smaller part in green bonds.
Ekerö Municipality has been elected as a member of Kommuninvest. 278 of Sweden's 290 members, or 96 per cent of the total number, are thus members of Kommuninvest. According to its Municipal Director, Ekerö becomes a member in order to be able to obtain the best possible loan terms for the external financing required for the coming years' increased investment volume.
Kommuninvest, the Swedish local government debt office, has issued a USD 1 billion Green Bond for its USD benchmark programme. The transaction is the largest Green Bond to date from a Nordic SSA, and confirmed Kommuninvest's position as Sweden's largest Green Bond issuer. Kommuninvest’s Green Loans portfolio represents 325 projects in 135 Swedish municipalities and regions.
Kommuninvest has updated its 2019 forecast for funding over 1-year duration. The forecast is unchanged at SEK 120-140 billion, however with an expectation of an outcome in the higher part of the interval as a result of solid lending growth. Kommuninvest continues to grow as a result of a larger market share, more members and increased welfare investments by Swedish municipalities and regions.
Kommuninvest has decided that the markets for benchmark borrowing in EUR, SEK and USD are strategic, which means that Kommuninvest intends to be a repeat issuer and have a long-term presence. The decision applies to both traditional borrowing and and so-called. sustainable borrowing, e.g. green bonds. The decision means that EUR is added as a strategic borrowing currency.
Kommuninvest's latest USD benchmark offering, a 3-year USD 1.25 billion note, met solid demand and achieved the issuer's tightest pricing yet vs. USD Treasuries. With an orderbook of USD 3.2 bn and more than 70 participating investors, Kommuninvest was able to tighten pricing by two basis points, issuing at 15 b.p. above mid-swaps and 10.8 b.p. over corresponding US Treasuries.
Kommuninvest has issued a new SEK 3 bn Green Bond, a tap to an existing bond maturing in 2023. Kommuninvest now has SEK 22.5 billion and USD 500 million outstanding in five Green Bonds, financing 284 green projects in 124 Swedish municipalities and regions. As of June, Kommuninvest's Green Loan portfolio amounted to SEK 52.4 billion in commitments, of which SEK 35.5 billion was disbursed.
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.
