Investors welcome Kommuninvest’s second USD benchmark for the year

Kommuninvest i Sverige AB, rated AAA/Aaa, issued its second USD benchmark transaction for the year on Wednesday. Kommuninvest printed USD 1 billion in 3-year Reg-S/144a notes. The notes, which mature on 1 March 2021, pays a semi-annual coupon of 2.875% and was issued at a spread of plus 20.7bps versus 3-year US Treasuries, equivalent to mid-swaps + 6bps.

Books were closed within 1.5 hours of opening, with final orders in excess of USD 2 billion and participation from more than 50 accounts, primarily central banks & official institutions as well as bank treasuries.

Tobias Landström, Deputy Head of Debt Management at Kommuninvest, commented:

– We are very pleased with the outcome of this transaction, and particularly with the final order book exceeding 50 accounts including a large number of central banks and bank treasuries. We appreciate the strong support for Kommuninvest bonds from core SSA buyers from across the globe.

Kommuninvest continues to grow as a result of a larger market share and the increased welfare investments by Swedish municipalities and county councils. Of the SEK 600 bn in municipal sector external loan debt, half is today financed via Kommuninvest. Kommuninvest forecasts a total of SEK 85-100 billion in long-term funding in 2018, up from SEK 76 billion in 2017.

For further information, see separate Press Points.

 

Contact information

Tobias Landström, Deputy Head of Debt Management, tel: +46 705 86 78 51, e-mail: tobias.landstrom@kommuninvest.se

Christian Ragnartz, Head of Debt Management, tel: +46 706 07 38 34, e-mail: christian.ragnartz@kommuninvest.se

Björn Bergstrand, Head of Media Relations, +46 708 86 94 76, e-mail: bjorn.bergstrand@kommuninvest.se