Swedish Benchmark Programme
The Swedish Benchmark Programme is a medium-term benchmark programme in SEK for maturities of more than one year, normally between one and ten years, that has given the Swedish fixed-income market a new asset class – liquid local government bonds – as an attractive complement to sovereign bonds and mortgage bonds. The ambition is for the benchmark programme to be the largest of Kommuninvest’s borrowing programmes.
Kommuninvest’s objective is for each new outstanding bond to reach benchmark size status of SEK 3 billion as quickly as possible. Pricing is determined based on market conditions, the planned volume of the issue, its maturity and other conditions. Subsequent to the new issue, bonds are issued “on-tap”. Except for the yield, the terms will be identical to those of the bond issued initially.
From April 27th, the following will apply:
- Kommuninvest’s weekly funding in the Swedish benchmark programme will only be processed through Bloomberg’s auction platform (AUPD).
- The day before an auction, Kommuninvest will publish the volumes offered for each bond. Depending on the company’s borrowing needs in each maturity, the volumes will vary and can sometimes be zero.
- Wednesday’s auction will start at 09.00 CET. Bids are to be placed as spread vs matched maturity swap expressed in basis points (BP). Bids are to be placed through market makers in the benchmark programme.
- The auction closes at 10.00 CET. The results are normally announced within 15 minutes of the closure. Market makers will be able find the summary of the auction in Bloomberg.
- Kommuninvest reserves the right to reject bids that are deemed to be unnecessarily expensive. There are no absolute rules for rejection. In a volatile and uncertain market, greater deviations from indicative market prices may be accepted.
Upcoming Issue dates/potential bonds
This is a preliminary calendar. If conditions change, dates might be adjusted.
Buyback facility under the Swedish Benchmark Programme
- Kommuninvest offers a buyback facility to market makers. This applies to outstanding bonds issued under the Swedish Benchmark Programme with a maturity of less than 12 months.
- Buybacks will be offered on an ongoing basis according to predetermined terms.
- Unless otherwise communicated, the buybacks will be executed in yield.
Statistics as of 2020-09-30
|Name||ISIN||Maturity||Coupon||Outstanding volume (SEK)|
|K2012||SE0005705621||2020-12-01||2,50%||22 542 000 000|
|K2109||SE0006995064||2021-09-15||1,00%||36 259 000 000|
|K2206||SE0009269418||2022-06-01||0,25%||38 215 000 000|
|K2302||SE0009662943||2023-02-22||0,75%||32 285 000 000|
|K2311||SE0010948240||2023-11-13||1,00%||33 868 000 000|
|K2410||SE0010469205||2024-10-02||1,00%||37 151 000 000|
|K2505||SE0011414010||2025-05-12||1,00%||36 900 000 000|
|K2602||SE0013745452||2026-02-04||0,75%||12 175 000 000|
|K2611||SE0012569572||2026-11-12||1,00%||26 950 000 000|
|Total||276 345 000 000|
|Barclays||+44 20 777 37 584|
|Danske Bank||+46 8 568 808 98|
|Nordea||+46 8 407 91 18|
|SEB||+46 8 506 23 170|
|Svenska Handelsbanken||+46 8 463 25 51|
|Swedbank||+46 700 91 17|