Kommuninvest i Sverige AB, rated AAA/Aaa, on Tuesday completed its second USD benchmark transaction for the year, printing USD 1 billion in 5-year Reg-S/144a notes.
Books opened on Tuesday with strong investor interest and orders of more than USD1 billion. Pricing, which was initially set at ‘Mid-Swaps +5 bps area’ was revised down to ‘Mid-Swaps + 4 bps’ after bookbuilding approached USD 1.4 billion. This equated to a spread of 22.95bps over the UST 1.625% due August 2019.
Anders Gånge, Head of Funding and Treasury at Kommuninvest, comments:
– Pricing in this transaction is one of the best Kommuninvest has ever achieved in a 5-year benchmark deal and we achieved our lowest spread ever compared with 5-year US treasuries. This makes us very pleased. By extending our benchmark curve in USD out to 2019, Kommuninvest now offers investors an even broader spectrum of benchmark bonds.
Including today’s issue, Kommuninvest has completed USD 7.7 billion of the USD 11-14 billion in long-term funding planned for 2014.
Kommuninvest i Sverige AB 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 approx. USD 32 billion in lending, Kommuninvest is the largest lender to Swedish local governments.
Anders Gånge, Head of Funding & Treasury, tel: +46 10 470 87 12
Björn Bergstrand, Senior IR Manager/Head of Media Relations,
tel: +46 (0)10 470 87 31 alt. +46 (0) 70 886 94 76