Kommuninvest will shortly, and given the market situation, issue a new bond under its Swedish Benchmark Programme.
The bond, labelled K1806, will be a short 4-year bond maturing on 20 June 2018. Final terms are to be established shortly.
– K1806 will be an important source of funds for the 3-year part of our lending, and also serves to complete our yield curve in SEK. Following the launch of K1806, Kommuninvest will have SEK benchmark bonds maturing every year from 2015 to 2020, says Anders Gånge, head of funding.
The Swedish Benchmark Programme was launched in 2010 with the plan to build Kommuninvest’s largest funding programme. The objective is to have SEK 110-140 billion outstanding in the programme by 2015; by the end of September some SEK 82 billion was outstanding. Perception to market demand guides the pace of issuance and management of the programme.
With the launch of K1806, Kommuninvest will have six outstanding bonds in its Swedish Benchmark Programme, with maturities annually from 2015 to 2020. Kommuninvest targets benchmark status with at least SEK 3 billion outstanding when K1806 on the first day of trading.
Kommuninvest’s funding strategy remains firm, with the target for SEK funding to account for 50 percent of the total funding by 2015. The target applies to all SEK funding, including bonds, commercial paper and floating rate notes.
Kommuninvest’s 2014 funding target, applicable to funding >1 year, is USD 9-10 billion (SEK 60-70 billion). This amount includes funding in the Swedish Benchmark Programme. As of 30 September, USD 7.7 bn (SEK 55.9 bn) had been raised.
About Kommuninvest
Kommuninvest is the Swedish local government debt office. Kommuninvest is owned by 280 Swedish municipalities and county councils with the purpose of supporting their financial operations through secure and cost-efficient financing, skills development and cooperation. With some SEK 210 billion in lending, Kommuninvest is the largest lender to Swedish local governments.
For further information
Anders Gånge, Head of Funding & Treasury, tel: +46 (0) 10-470 87 12
e-mail: anders.gange@kommuninvest.se
Björn Bergstrand, Senior IR Manager/Head of Media Relations,
tel: +46 (0)10 470 87 31 alt. +46 (0) 70 886 94 76
e-mail: bjorn.bergstrand@kommuninvest.se
Pelle Ekestubbe, Senior Portfolio Manager, tel: +46 (0) 10-470 88 62
e-mail: pelle.ekestubbe@kommuninvest.se
