Kommuninvest will shortly, and market conditions permitting, issue a new bond under its Swedish Benchmark Programme. The bond, labelled K2002, will mature on 16 February 2020. Kommuninvest targets benchmark status for K2002, with at least SEK 3 billion outstanding on the first day of trading. Final terms are to be established shortly.
Kommuninvest has reached its target of having at least SEK 100 billion outstanding in the programme by 2015, a target established when the Programme was launched in 2010. By 11 February 2016, some SEK 130 billion was outstanding.
The borrowing needs of the Swedish local government sector is expected to continue to be strong, and the management of the Programme can enter a new phase. Kommuninvest currently accounts for approximately 50 percent of the total external borrowings of Swedish local governments.
– We now have a complete curve, with seven outstanding bonds. Going forward we will increasingly look to manage the curve, and volume growth and outstanding volume in each duration will to a greater extent be adapted to lending growth, says Pelle Ekestubbe, Senior Portfolio Manager at Kommuninvest.
Kommuninvest’s funding strategy includes a 50 percent funding target in SEK, with the Swedish Benchmark Programme as the primary funding source. Kommuninvest’s 2016 funding target, applicable to funding >1 year, is SEK 125-140 billion (USD 15-17 billion).
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 250 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
Pelle Ekestubbe, Senior Portfolio Manager, tel: +46 (0) 10-470 88 62
Björn Bergstrand, Senior IR Manager/Head of Media Relations,
tel: +46 (0)10 470 87 31 alt. +46 (0) 70 886 94 76