Kommuninvest has issued USD 1 billion in a 2 year bond in its USD benchmark programme.
The new bond, which matures on 2 February 2022, was priced at 15 basis points above mid-swaps and 33,5 basis points above corresponding US Treasuries. Interest was very high and the emission was oversubscribed 3,5 times. The pricing was tightened by as much as 5 basis points.
After a period of exceptional stress in many markets, liquidity has gradually improved. Since the corona crisis began, Kommuninvest has prioritized the SEK market due to historically high demand and better funding levels. When conditions now have started to normalize, it is logical to return to the company’s other strategic funding markets.
”Kommuninvest has had very good access to liquidity throughout the crisis. Demand in the SEK market has been historically strong, eventhough demand in shorter maturities have eased slightly. At the same time, interest from the USD market have returned. We are pleased to be back in the USD market and to meet such strong interest from investors. The order book was one of the largest we have ever had and the price is well in line with the SEK market for the corresponding amounts. The price, combined with an assessment of market conditions, is always of critical importance when we decide between our strategic markets”, says Christian Ragnartz, Head of Debt Management at Kommuninvest.
Kommuninvest’s revised forecast for long-term borrowing in 2020 is SEK 150-170 billion. So far, including this transaction, SEK 51,7 billion has been raised.
For further information
Head of Debt Management
tel: +46 706 07 38 34
Deputy Head of Debt Management
tel: +46 705 86 78 51
Head of Communications
tel: +46 73 068 45 45