Kommuninvest will shortly, and market conditions permitting, issue a new bond under its Swedish Benchmark Programme. The bond, labelled K2302, will mature on 22 of February 2023. Kommuninvest targets benchmark status for K2302, equivalent to at least SEK 3 billion outstanding on the first day of trading. Final terms are to be established shortly
Kommuninvest currently accounts for approximately 50 percent of the total external borrowings of Swedish local governments, with a substantial part of its funding undertaken in its Swedish benchmark programme. Current outstanding volumes is about SEK 150 billion in seven bonds.
– Our Swedish benchmark programme is now well established, and our focus is on maintaining and developing the programme in tune with the local government sector’s borrowing needs. We also see that our customers tend to go for longer maturities. This motivates the launch of this new 6-year-old bond, says Pelle Ekestubbe, Senior Portfolio Manager at Kommuninvest.
Kommuninvest’s funding strategy is based on an approx. 50 percent funding target in SEK, market conditions permitting, and with the Swedish Benchmark Programme as the primary funding source. Kommuninvest’s 2017 funding target, applicable to funding >1 year, is SEK 100 billion (USD 11 billion).
Kommuninvest is the Swedish local government debt office. Kommuninvest is owned by 287 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 275 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
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