Annual Accounts 2011

Summary of the year

  • Balance sheet total SEK 234.0 (190.2) billion
  • Lending SEK 168.1 (133.7) billion
  • Market share 65 (54) percent of members’ borrowing and 44 (35) percent of local government sector’s total lending
  • Operating profit SEK 396.1 (275.7) million
  • Persistently high credit rating: Aaa (Moody’s) and AAA (S&P)
  • Seven new members, total membership now 267


CEO’s statement
In times of financial unease, the importance of stable and cost-efficient financing for the local government sector increases. This was also the case in 2011 – a year in which the European debt crisis in particular contributed to considerable uncertainty in the financial markets, with increased costs and concerns for borrowers in financing their operations. The municipalities’ finance cooperation through Kommuninvest has continued to strengthen – 267 municipalities and county councils are now members. With higher lending volumes than ever, the value of cooperation and Kommuninvest’s increased contribution to financial stability is made clear. In 2011, Kommuninvest’s role has been secured as the leading financing institution for the entire Swedish local government sector, with a 65 percent market share of member authorities’ borrowing.

For the first time, Kommuninvest saw total lending pass SEK 150 billion in 2011; a natural increase and a development that I anticipate will continue. The reformed regulatory system within the financial sector, with increasing demands in terms of capital and liquidity, generally entails raised price levels for bank loans to Swedish local government authorities and thus to increased demand for Kommuninvest’s loans. We win nine out of ten procurement processes.

New models for financing the local government sector have been developed in France and in New Zeeland and it is also coming in the United Kingdom. We welcome additional colleagues in the international arena. This is particularly important in the work on future regulatory systems for financial institutions. Here, we conduct active lobbying efforts, both on national and international levels, although we need to gain a stronger common voice and that can only be achieved if the local government financing institutions around the world grow in number. Today, regulations are extensively designed with the largest banks in mind and one can feel that the diversity of the sector is not reflected. Specialised players are sometimes caught in between.

Ongoing changes to the regulatory systems make the need to clarify Kommuninvest’s role and mission more important, not only in an EU perspective but also in a national perspective. It is natural for the local government sector to have its own borrowing function, in the same way that it is natural for the government to, and for regulations and guidelines to create suitable conditions for this reality. This applies, for example, to the issue of the stability charge, which resulted in an increase of 50 percent of Kommuninvest’s total costs in 2011, but even the proposed leverage ratio regulation.

Tomas Werngren, President and CEO


Any questions should be directed to:
President & CEO Tomas Werngren, tel. +46 (0)70 6450669
Executive Vice President Maria Viimne, tel. +46 (0)70 3336902
Head of Communication Anitha Holmberg, tel. +46 (0)70 6386663, or

Kommuninvest in summary
Kommuninvest is a credit market company owned and guaranteed by Swedish municipalities and county councils. Kommuninvest’s vision is to be the natural choice for Swedish municipalities and county councils when it comes to products and tools for efficient financial administration, with a focus on financing. Kommuninvest borrows money on the national and international capital markets and has the highest possible credit rating, Aaa/AAA. Lending has the lowest possible risk rating (BIS 0 percent). The company is a monetary counterparty in the Swedish Riksbank. The 269 members comprise 90 percent of Sweden’s municipalities and 40 percent of Sweden’s county councils or regions. The balance sheet total was SEK 234 billion, and lending amounted to SEK 168 billion at the end of 2011.

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