Interim report 2021
Kommuninvest i Sverige AB
Comment from the CEO
Despite the severe strain brought by the corona pandemic, the local government sector economy demonstrated manifest strength during the first half of the year. Extensive central government allocations in connection with the pandemic were one reason for this. Another was the rapid economic recovery that began in the autumn of 2020.
The pace of investment remained high. Accordingly, we also witnessed increased lending. However, because many municipalities and regions experienced favourable liquidity, the rate at which lending increased was relatively subdued.
During the spring, our sustainability work passed two important milestones.
- In late March, following a pilot phase, we launched Social Sustainability Loans for all members.
- In April we received the Environmental targets award, Miljömålspriset 2021.
Important events
The corona pandemic
During the first half of the year, the corona pandemic has continued to make its mark on societal development. Viewed across the full six-month period, the general trend has, however, been positive. The mass vaccination that had made considerable progress in Sweden and many other countries by 30 June has had a favourable effect. In this context, the economic recovery has been strong and stable. Growth has been vigorous in Sweden and virtually worldwide. High growth figures have been forecast for 2021 as a whole, as well as for 2022, albeit at somewhat lower levels.
Kommuninvest’s lending
As per 30 June 2021, Kommuninvest’s lending amounted to SEK 452.9 (442.8) billion in nominal terms, an increase of 2 (8) percent. The recognised value of the lending was SEK 454.4 (445.8) billion. Two factors continuing to affect growth are the local government sector’s favourable liquidity due to large-scale central government allocations during the pandemic, as well as a more challenging competitive position relative to customers with their own market programmes because of the squeezed interest rate situation.
Kommuninvest’s competitiveness, expressed as the percentage of accepted bids, has remained strong.
Sustainability report
Kommuninvest’s mission is to finance the local government sector’s development and investments for a beneficial and sustainable society, sustainability work includes environmental, climate, as well as social and economic dimensions alike.
During the period, Kommuninvest has:
- Introduced new green financing requirements with a focus on climate impact in the construction process, initiating a new project regarding renovations
Kommuninvest, IVL Svenska Miljöinstitutet and Public Housing Sweden cooperate within the framework of the “Climate requirements at a reasonable cost” initiative. In light of the procurement guidelines presented in 2020, Kommuninvest introduced stricter requirements for granting Green loans for Green buildings in January. - Awarded Miljömålspriset 2021 (environmental targets award)
The Miljömålspriset award is presented annually by the Swedish Environmental Protection Agency. The purpose is to draw attention to and reward ambitious and successful environmental work that contributes to achieving Sweden’s environmental targets. - Updated framework for green bonds, initiated adjustment to the new taxonomy
In June, Kommuninvest published an updated Framework for Green Bonds, with a new reference to the National Board of Housing, Building and Planning’s revised building regulations, BBR 29, - Launched Social Sustainability Loans
This new loan product shares essential basic features with Green Loans, but adds some new aspects to be able to contribute meaningfully to the municipalities’ and regions’ work for a beneficial life for as many citizens as possible.
Multi-year summary, Kommuninvest i Sverige AB
| 30 Jun 2021 | 30 Jun 2020 | 30 Jun 2019 | 31 Dec 2019 | 31 Dec 2018 | |
| Total assets, SEK, million | 549,726.5 | 537,446.3 | 469,297.4 | 471,320.7 | 417,202.1 |
| Lending (recognised value), SEK, million | 454,357.7 | 441,481.9 | 388,448.6 | 408,218.1 | 355,710.0 |
| Net profit for the period, SEK, million | 97.2 | –159.6 | 282.5 | 307.9 | 586.1 |
| Members, total | 293 | 291 | 289 | 290 | 288 |
| of which, municipalities | 279 | 278 | 277 | 278 | 277 |
| of which, regions | 14 | 13 | 12 | 12 | 11 |
| Core Tier I capital ratio1, % | 303.9 | 153.4 | 156.3 | 126.8 | 188.4 |
| Tier I capital ratio2, % | 303.9 | 153.4 | 156.3 | 126.8 | 188.4 |
| Total capital ratio3, % | 303.9 | 153.4 | 156.3 | 126.8 | 188.4 |
| Leverage ratio, % | 9.27 | 7.84 | 10.60 | 12.29 | 11.30 |
2) Primärkapital i relation till totalt riskexponeringsbelopp.
3) Total kapitalbas i relation till totalt riskexponeringsbelopp.
Lending and borrowing
Lending portfolio by borrower category
30 Jun 2021 (31 Dec 2020)
[hichart type=’pie’ title=” subtitle=” xaxis=” xaxismargin=” tickintervalx=” yaxis=” yaxis2=” yaxismargin=” hidedatalabels=” hidedatalabelsy=” hidelegends=” combinedatalabels=” chartheight=’350′ chartsize=’100%’ chartinnersize=” description=” stacking=’normal’]
| Category | Percent |
| Municipalities* 43 (43) % | 43 |
| Municipal housing companies 27 (27) % | 27 |
| Municipal energy companies 5 (5) % | 5 |
|
Other municipal companies 22 (22) % |
22 |
| Regions 3 (3) % | 3 |
[/hichart]
*) Some lending to municipalities is on-lent to municipal companies through municipal internal banks.New funding by programme**
1 Jan–30 Jun 2021 (1 Jan–30 Jun 2020)
[hichart type=’pie’ title=” subtitle=” xaxis=” xaxismargin=” tickintervalx=” yaxis=” yaxis2=” yaxismargin=” hidedatalabels=” hidedatalabelsy=” hidelegends=” combinedatalabels=” chartheight=’350′ chartsize=’100%’ chartinnersize=” description=” stacking=”]
| Program | Percent |
|
Swedish Benchmark Programme 53 (61) % |
53% |
|
Benchmark funding 23 (25) % |
23% |
|
Uridashi 6 (8) % |
6% |
|
Green Bonds 18 (6) % |
18% |
[/hichart]
**) excl. commercial paper fundingNumber of members and lending volume
1990–2021*
[hichart type=’column’ title=” subtitle=” xaxis=” xaxismargin=” tickintervalx=’1′ tickintervaly=’10’ xaxisrotation=’45’ yaxis=’Members’ yaxis2=’SEK bn’ yaxismargin=’700′ hidedatalabels=” hidedatalabelsy=” hidelegends=” combinedatalabels=” chartheight=’350′ chartsize=” chartinnersize=” description=” stacking=” yaxismax=’450′ yaxis2max=’450′]
|
Number of members, Kommuninvest Cooperative Society |
|Lending (nominal value), Kommuninvest i Sverige AB | |
| 1990 | 11 | 1,2 |
| 1991 | 11 | 1,9 |
| 1992 | 11 | 5,7 |
| 1993 | 23 | 8,5 |
| 1994 | 56 | 12,9 |
| 1995 | 71 | 15,7 |
| 1996 | 78 | 18,7 |
| 1997 | 93 | 23 |
| 1998 | 100 | 24,9 |
| 1999 | 109 | 26,6 |
| 2000 | 113 | 30,9 |
| 2001 | 124 | 36,5 |
| 2002 | 132 | 42,6 |
| 2003 | 145 | 49,4 |
| 2004 | 158 | 51,5 |
| 2005 | 174 | 56,7 |
| 2006 | 189 | 66,8 |
| 2007 | 210 | 77,9 |
| 2008 | 223 | 104,7 |
| 2009 | 248 | 123,6 |
| 2010 | 260 | 133,7 |
| 2011 | 267 | 168,1 |
| 2012 | 274 | 201,0 |
| 2013 | 278 | 208,6 |
| 2014 | 280 | 222,8 |
| 2015 | 280 | 254,4 |
| 2016 | 286 | 277 |
| 2017 | 288 | 310,1 |
| 2018 | 288 | 331,4 |
| 2019 | 289 | 406,5 |
| 2020 | 292 | 442,8 |
| 2021* | 293 | 452,9 |
[/hichart]
About Kommuninvest
Kommuninvest is a municipal collaboration for efficient and sustainable financing of housing, infrastructure, schools, hospitals, etc. Together we get better loan terms than each one individually. Since the start in 1986, the collaboration has saved billions for members in the form of lower interest rates. At present, 293 municipalities and regions are members of this voluntary collaboration. With a balance sheet total of approx. SEK 550 billion, Kommuninvest is the municipal sector’s largest lender and Sweden’s sixth largest credit institution. The head office is located in Örebro.
