Kommuninvest - Reduced funding forecast
22 June 2020Kommuninvest has revised its funding forecast for 2020. The need for long-term funding, with maturities longer than one year, is expected to be approximately SEK 150-160 billion. This is lower than the previous forecast of SEK 150 to 170 billion. The new forecast is built on expected renewal of maturing loans, new lending, customer demand regarding different maturities as well as the size and financing of the liquidity reserve at the end of the year.
The main reason for the revised forecast is slightly reduced lending growth. Lending volumes, which during the first two months of the Corona crisis were very high, have since then returned to normal or lower levels.
Funding operations will, depending on prices and market conditions, be carried out in the company’s strategic markets: SEK, USD and EUR. A small part will be green funding.
– After the initial period of market turbulence, municipalities’ and regions’ borrowing quite quickly returned to more normal levels. At the same time, it should be underlined that the uncertainty of the forecast, because of the Corona crisis, continues to be higher than usual, says Christian Ragnartz, Head of Debt Management at Kommuninvest.
For further information
Christian Ragnartz, Head of Debt Management, tel: +46 706 07 38 34, e-mail: christian.ragnartz@kommuninvest.se
David Ljung, Head of Communications, tel: +46 73 068 45 45, e-mail: david.ljung@kommuninvest.se