Kommuninvest will shortly, and given the market situation, issue a new bond under its Swedish Benchmark Programme. The bond, labelled K2109, will mature on 15 September 2021. Kommuninvest targets benchmark status for K2109, with at least SEK 3 billion outstanding on the first day of trading. Final terms are to be established shortly.
Kommuninvest is approaching its 2015 target of SEK 110-140 billion outstanding in the Programme, set when the Programme launched in 2010. By 31 March, some SEK 107 billion was outstanding. As a result, the management of the Programme can enter a new phase.
– We have established a good curve, with six outstanding bonds in the one to six year spectrum. Going forward, we will increasingly look to extend the curve and grow the programme proportionally to growth in lending, says Anders Gånge, Head of Funding.
Kommuninvest also raises the targeted level for outstanding volume in each bond from a maximum of SEK 25 billion to a maximum of SEK 30 billion.
Kommuninvest’s funding strategy includes a 50 percent funding target in SEK, with the Swedish Benchmark Programme as the primary funding source.
Kommuninvest’s 2015 funding target, applicable to funding >1 year, is SEK 90-105 billion (USD 12-14 billion based on SEK/USD exchange rate as of 1 January). As of 31 March, SEK 34 billion had been raised.
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 225 billion in lending, Kommuninvest is the largest lender to Swedish local governments.
Additional Swedish Benchmark Programme information
For further information
Anders Gånge, Head of Funding & Treasury, tel: +46 (0) 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
Pelle Ekestubbe, Senior Portfolio Manager, tel: +46 (0) 10-470 88 62