KBN, rated Aaa/AAA, has successfully launched a new USD 1.5 billion 5-year benchmark bond, maturing in September 2029.
- A textbook transaction from start to finish. Solid interest from the get-go resulting in a USD 3.6bn book, which allowed us to price at a minimum new issue premium. The subsequent solid performance in secondary should mean a successful transaction for all parties involved. KBN funding programme is now around 90% completed for the year, says Thomas Møller, Head of Funding & IR at KBN.
This marks KBN’s third USD benchmark transaction this year. The bond attracted strong investor interest, with the order book exceeding USD 3.6 billion. The distribution was well-diversified globally, with 42% from the Americas, 34% from EMEA, and 24% from APAC. Central Banks and Official Institutions dominated the investor base, accounting for 75% of the orders.
The transaction was managed by Citi, Deutsche Bank, HSBC, and Scotiabank, and is listed on the Luxembourg Stock Exchange.
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