Kommuninvest issues 3-year USD benchmark bond

Kommuninvest, the Swedish local government debt office, has issued USD 1.25 billion in a 3-year Reg-S/144a note for its USD benchmark programme. The new bond matures on 24 Oct 2022 and was issued with a yield of 1.625 percent, 15 basis points above mid-swaps and 10.8 basis points over corresponding US Treasuries. The investor interest in this transaction was significant. With an orderbook of USD 3.2 bn Kommuninvest chose to tighten pricing with two basis points against mid-swaps and print USD 1.25 bn.

Christian Ragnartz, Head of Debt Management at Kommuninvest, commented:

– We are pleased with the good reception for this USD transaction, and particularly the broad investor demand. More than 70 investors were involved in the transaction, which is an acknowledgement for Kommuninvest as an issuer and will support cost-effective financing for Kommuninvest’s members.

After the transaction, Kommuninvest has twelve outstanding benchmark bonds in USD, maturing annually from 2019 to 2022. The total outstanding volume in the USD benchmark programme amounts to USD 14.6 billion.

Kommuninvest’s current forecast for long-term borrowing for 2019 is SEK 120-140 billion. With the recent USD transaction, a total of SEK 103 billion (USD 10.7 billion) has been funded to date. For further information about the transaction please consult the attached Press Points.

Press Points

USD benchmark programme

For further information

Christian Ragnartz
Head of Debt Management
tel: +46 706 07 38 34
e-mail: christian.ragnartz@kommuninvest.se

Tobias Landström
Deputy Head of Debt Management
tel +46 70 586 78 51
e-mail: tobias.landstrom@kommuninvest.se

Marcus Waineby
Senior Funding Manager
tel: +46 706 96 77 69
e-mail: marcus.waineby@kommuninvest.se

Björn Bergstrand
Head of Media Relations
tel: +46 (0)10 470 87 31 alt. +46 70 886 94 76
e-mail: bjorn.bergstrand@kommuninvest.se