Kommuninvest issued its third USD benchmark transaction for the year on Tuesday. The Swedish local government debt office printed USD 1 billion in 3-year Reg-S/144a notes. The notes, which mature on 16 November 2021, pays a semi-annual coupon of 3.00% and was issued at a spread of 19.4bps over US Treasuries 2.875% due September 2021, equivalent to mid-swaps + 3bps. This is one of the lowest levels against both swaps and US Treasuries that Kommuninvest has ever has experienced for a three-year bond.
The order book approached USD1.3bn from over 50 accounts, primarily central banks & official institutions as well as bank treasuries.
| Bond terms | |
| Issuer | Kommuninvest i Sverige AB |
| Size | USD 1 billion |
| Coupon | 3.000 % semi-annual |
| Maturity | 16 November 2021 |
| Price | 99,799% |
| Yield | 3,103% |
| Spread versus USD mid-swaps | +3 bps |
| Spread versus US Treasuries | +19,4 bps |
| Lead managers | BofAML, BNP Paribas, HSBC, JP Morgan |
Marcus Waineby, Senior Funding Manager at Kommuninvest, commented:
– This was a solid outcome for Kommuninvest. Investor interest was geographically widespread, including strong participation from central banks, official institutions, bank treasuries and fund managers.
For further information, see separate Press Points.
Contact information
Tobias Landström, Deputy Head of Debt Management
+46 705 86 78 51, e-mail: tobias.landstrom@kommuninvest.se
Marcus Waineby, Senior Funding Manager
+46 706 96 77 69, e-mail: marcus.waineby@kommuninvest.se
Björn Bergstrand, Head of Media Relations,
+46 708 86 94 76, e-mail: bjorn.bergstrand@kommuninvest.se
