A secure alternative for investors
Investing in bonds or other securities issued by Kommuninvest is an attractive option for Swedish and international investors seeking investments that generate a highly secure return.
A number of factors contribute to Swedish municipalities and regions representing, through Kommuninvest, a highly reliable and credible player in the financial market:
- Highest possible credit rating (Aaa/AAA). Few credit institutions in the world offer as highly rated securities as Kommuninvest.
- Joint and several guarantee. When a municipality or region becomes a member of Kommuninvest, it undertakes at the same time to be jointly and severally liable for Kommuninvest’s payment obligations in the event that Kommuninvest should ever fail to fulfil these.
- Owners who can never be declared bankrupt or cease to exist. By law, Swedish municipalities and regions can never cease to exist other than by merging.
- Owners entitled to levy taxes. Municipalities and regions in Sweden have a constitutional right to charge taxes to finance their operations. The tax system, combined with stringent demands on a balanced economy, provides the local government sector with good income opportunities and secure finances.
- Lowest possible risk weighting. From the perspective of risk, securities issued by Kommuninvest are treated as equivalent to securities issued by the Swedish state.
- Established and recognised player. Kommuninvest is monitored continuously by Finansinspektionen (the Swedish Financial Supervisory Authority) and is also an approved monetary counterparty to the Riksbank and a member of its RIX payment system.