KBN / Successful USD 1.25 billion Benchmark
06 June 2024With books 2.7 times oversubscribed and 62 investors participating, KBN achieved its tightest US Dollar benchmark pricing outcome versus US Treasuries since October 2021.
- Another well placed USD benchmark transaction, a big thank you to the Leads for a job well done and great to see the bond perform on the break, as it should. KBN funding program is now over 60% done for the year, says Thomas Møller, Head of Funding & IR at KBN.
The transaction enjoyed particularly strong support from Central Banks and Official Institutions, who took 73% of the final allocations.
Highlights:
- With a re-offer spread of SOFR MS +32bps / CT3 +10.8bps, KBN achieved its tightest US Dollar benchmark pricing outcome versus US Treasuries since October 2021.
- The depth of investor demand enabled KBN to tighten the final reoffer spread by 3bps from IPTs, with books 2.7 times oversubscribed and 62 investors participating.
- Geographically diverse investor participation, with bonds placed in EMEA (42%), Americas (32%), and APAC (26%).
- This new issue marks KBN’s third outing in the USD market in 2024. The issuer’s previous Benchmark transaction in the currency was a 5-year US Dollar Benchmark priced in January 2024, followed by a 4-year US Dollar FRN priced in February 2024.