Kommuninvest has managed to raise a billion dollars by taking out a new bond. It is his third transaction of the year with the ‘Benchmark’ program. The new bond, which matures on September 15, 2023, had an ‘Order Book’ of approximately 1.4 billion and included 31 investors. The bond was priced one basis point above mid-exchanges and 15.5 basis points above corresponding US Treasuries.
Trading on the US market remains favorable for Kommuninvest, as conditions are as good as on the SEK market. In the company’s third strategic market, the Euro, prices continue to be relatively high.
“I am pleased to see that time and time again we are greeted with such wide interest in the US market. The ‘Order Book’ was quite diverse both in terms of type of investors and geographical distribution. Our focus is to secure as good terms as possible for the financing of the investments that municipalities and regions are now making in the Swedish welfare state,”
says Tobias Landström, director of debt management at Kommuninvest.
By including this transaction, Kommuninvest has borrowed around SEK 55 billion in 2021. The forecast for this year is between SEK 120 and 140 billion.
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Kommuninvest is a municipal cooperation for the efficient and sustainable financing of housing, infrastructure, schools, hospitals… Together they achieve better loan terms than each of the participants individually.
Since its inception in 1986, Kommuninvest’s collaboration has helped reduce borrowing costs by several billion SEK. Currently, 292 municipalities and regions are members of this voluntary cooperation.
With a balance sheet in excess of SEK 525 billion (about USD 62 billion), Kommuninvest is the largest lender in the local sector and one of the ten largest credit institutions in Sweden. Its head office is located in the Swedish city of Örebro.
