Kommuninvest completes largest bond issue to date

Kommuninvest has completed its largest bond issue to date, issuing USD 2.35 billion in a 3-year benchmark issue on April 16. When books closed, Kommuninvest had also completed the largest Nordic Agency USD benchmark transaction ever [1] . “This issue shows that we are committed to build an attractive and liquid benchmark curve in USD,” says Kommuninvest’s Head of Funding Anders Gånge.

The issue was Kommuninvest’s second with RegS/144A-documentation, allowing domestic American institutional investors to participate. More than 60 investors placed over USD 3 billion in orders, demonstrating the strength of the Kommuninvest credit.

“We had anticipated robust demand, but were still surprised to see the strength of the order book. It was outright fabulous,” commented Anders Gånge.

Kommuninvest’s traditional investor base of central banks and official institutions represented 72 percent of the transaction. Demand was broad based, with global distribution to the US, EMEA and Asia. The issue was priced at 11 bps above mid-swaps, lower than indicative pricing and considerable lower than in the previous USD benchmark issue in October 2012.

“We are extremely pleased to note that every new USD benchmark we have done has come with stronger price momentum, new investors participating and larger order books than the previous one,” said Anders Gånge.

Kommuninvest mandated four international banks to lead the issue: Citi, Deutsche Bank, JP Morgan and Nomura. With the issue, Kommuninvest’s yield curve in USD was extended to five maturities outstanding.

For further information, see separate Press Points.

Contact information:

Anders Gånge, Head of Funding and Treasury, mobile: +46 70 616 75 10,
anders.gange@kommuninvest.se

Björn Bergstrand, Senior Investor Relations Manager / Head of Media Relations, mobile: +46 708 86 94 76,
bjorn.bergstrand@kommuninvest.se

[1] Kommuninvest issues in the SSA segment =Sovereigns, Supranationals and Agencies

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