Kommuninvest will shortly, market conditions permitting, issue a new bond under its Swedish Benchmark Programme. The bond, labelled K2311, will mature on 13 November 2023. Kommuninvest targets benchmark status for K2311, equivalent to at least SEK 3 billion outstanding on the first day of trading. Final terms are to be established shortly
Kommuninvest today accounts for approximately 50 percent of the municipal sector’s total loan debt, with a significant proportion of its funding in the Swedish Benchmark Programme. Total outstanding volume amounts to approximately SEK 170 billion in eight bonds. The Swedish programme is expected to continue to grow for a long time and the ambition is to be a natural complement the Swedish government bonds. The growth rate is determined by members’ needs, which, however, are expected to remain moderate in relation to GDP, and whether funding levels in Swedish krona are deemed attractive relative to funding in US dollars.
Pelle Ekestubbe, Senior Portfolio Manager at Kommuninvest and responsible for the Swedish Benchmark Programme, comments:
– Since the launch in 2010, our Swedish krona benchmark programme has become Kommuninvest’s primary funding programme. We take a long-term view and have a clear focus on the liquidity of our bonds. As of next week, Kommuninvest’s bonds will be included in the broadest bond index, Nasdaq OMRXALL, this is a milestone and an important interim target.
Kommuninvest’s ambition, like the Swedish National Debt Office, is to be transparent and predictable regarding its funding activities. Furthermore, Kommuninvest actively works to broaden the investor base.
Kommuninvest continues to grow as a consequence of increased market share and increased investments in welfare by municipalities, county councils and regions. Today Kommuninvest funds more than half of the municipal sector’s total debt of over SEK 600 billion. Kommuninvest expects a total of borrowing SEK 85-100 billion in long-term borrowing during the year.
Kommuninvest’s Swedish benchmark bonds are included in Nasdaq’s bond index OMRXALL from March 12, 2018.
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 more than SEK 300 billion in lending, Kommuninvest is the largest lender to Swedish local governments.
For further information
Tobias Landström, Deputy Head of Debt Management, tel: +46 10 470 87 59
Pelle Ekestubbe, Senior Portfolio Manager, tel: +46 10 470 88 62
Björn Bergstrand, Head of Media Relations tel: +46 10 470 87 31 alt. +4670-886 94 76