Kommuninvest Cooperative Society is a voluntary membership organisation with the municipalities and regions n Sweden as members. The member organisation, with 295 members, runs the credit market company Kommuninvest AB.Our mission focuses on three different areas. We finance development in the local government sector, we offer a safe investment for investors and we act as a centre of excellence in municipal financial management and long-term sustainability.

We finance development

Municipalities and regions need secure access to money to be able to invest in new schools, preschools, nursing homes, infrastructure, hospitals, swimming pools, sports facilities and residential areas for the future. 60 percent of all loans that municipalities and regions in Sweden use comes from us. In other words, Kommuninvest is the largest lender in the local government sector in Sweden. Since its inception in 1986, our customers and members have collectively reduced their borrowing costs by billions.

Large investment and borrowing needs

The local government sector's investment and borrowing needs have increased in recent years. Kommuninvest's role is to ensure stable and affordable financing. We borrow money in the capital market, which we then lend – as cheaply as possible – to municipalities and regions that are members of Kommuninvest.

Non-profit cooperation

Our members can obtain secure and competitive loans and effective tools for their financial management. At Kommuninvest, we have no profit motive and want to offer our customers the best terms in the long term.

We offer a safe investment for investors

Securities issued by Kommuninvest are low-risk investments that provide attractive returns. Together, Swedish municipalities and regions are a credible player in the international capital market. A number of interacting factors mean that Swedish municipalities and regions through Kommuninvest become a very reliable and credible player in the financial market:

• Highest possible credit rating (AAA/Aaa). Few credit institutions in the world offer securities with as high a credit rating as Kommuninvest.
• Joint and several guarantee undertaking. When a municipality or region becomes a member of Kommuninvest, it also undertakes to be jointly and severally responsible for Kommuninvest's payment obligations.
• A Swedish municipality has never gone bankrupt. In addition, municipalities and regions – by law – can never cease to exist in any other way than through mergers.
• Owners with the right to tax. Municipalities and regions have the constitutional right to levy taxes to finance their activities.
• The tax system, combined with high demands on a balanced economy, provides the local government sector with good income opportunities and secure finances.
• Lowest possible risk weight. In terms of risk, securities issued by Kommuninvest are considered to be equivalent to securities issued by the Swedish state.
• Established and recognized actor. Kommuninvest is continuously monitored by the Swedish Financial Supervisory Authority and is a monetary policy counterparty to the Riksbank and a member of their payment system RIX.

We act as a knowledge centre for the local government sector

As a credit institution with only municipalities and regions, as well as their companies, as customers, we have unique experience of financing the Swedish local government sector. We are engaged in advice, education, research and collaboration on financial management issues. Over the years, Kommuninvest has developed into much more than a credit institution. This is reflected in the fact that we:

• Represents municipalities and regions as a referral body in matters of financing and debt management
• Funds and coordinates research on local government finances
• Providing expertise and analysis tools to our members on financing issues
• Organizes training and webinars/seminars in economics and financial management for civil servants and politicians
• Promotes collaboration in the municipal sector