Kommuninvest today completed its third issue in 2020 under the USD benchmark program. This time, USD 1.25 billion was issued in a new bond maturing on 1st of December 2022.
The transaction was successful, with a bid-to-cover ratio of 2.3 as well as a pricing set at 7 basis points above mid-swaps and 14.55 basis points above corresponding US Treasuries. The order book was large, involving 53 investors.
For Kommuninvest, the USD market has been relatively favorable ever since the covid-19 related turbulence subsided during the second half of April. Demand is high and the pricing is favorable. The borrowing in USD is now carried out at approximately the same price level as the borrowing in SEK.
– We continue to see good support from investors in our transactions. Due to strong investor interest, pricing could be tightened by 3 basis points. This year, we have in total issued USD 3.5 billion in USD benchmarks. This strategy has been useful to fulfil our task to secure the most cost-effective funding for our members, Swedish municipalities and regions, says Christian Ragnartz, Head of Debt Management at Kommuninvest.
Kommuninvest has now borrowed around SEK 90 billion in 2020. The borrowing forecast for this year is, following the latest revision in June, SEK 150-160 billion.
For further information
Christian Ragnartz, Head of Debt Management, tel: +46 706 07 38 34, e-mail: christian.ragnartz@kommuninvest.se
Tobias Landström, Deputy Head of Debt Management, tel: +46 705 86 78 51, e-mail: tobias.landstrom@kommuninvest.se
David Ljung, Head of Communications, tel: +46 73 068 45 45, e-mail: david.ljung@kommuninvest.se
