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Swedish Financial Supervisory Authority confirms classification of Kommuninvest’s securities

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Kommuninvest i Sverige AB is continuing its efforts to introduce a benchmark programme for the Swedish bond market. 

The study being conducted by Kommuninvest alongside the banks with which it has established relations is progressing according to plan. Among other results, a number of questions have been resolved regarding interpretations of legislation and ordinances in investors’ investment regulations. An enquiry was submitted to the Swedish Financial Supervisory Authority by the Money Market Council of the Swedish Securities Dealers Association (SSDA). Following its investigation, the Swedish Financial Supervisory Authority has confirmed that securities issued by Kommuninvest may be treated in the same way as securities issued or guaranteed by the Swedish government. 

“We welcome this announcement, which further confirms the confidence investors can feel when investing in our securities. This should also facilitate matters for Swedish investors in their credit processes ahead of the first issue within the programme, which, if all progresses as planned, will take place in October,” comments Anders Gånge, head of Kommuninvest’s Finance & Treasury Department. 

Kommuninvest’s objective for the bond programme is to issue a sufficient volume in the Swedish market to be able to achieve favourable liquidity and, in the longer term, to be able to generate approximately half of its total borrowing in Sweden. 

Kommuninvest in summary:

  • 25 new members in 2009, 252 municipalities and county councils in total
  • Balance sheet total SEK 183.0 billion
  • Lending SEK 123.6 billion

For further information, please contact
Anders Gånge
Head of Finance
Tel.:  +46 19 16 78 30
Mobile: +46 70 616 75 10

 

KOMMUNINVEST acts as the Swedish Local Government Debt Office and is a credit market company owned and guaranteed by Swedish municipalities and county councils. The company’s remit is to create the best conditions in the long term for members’ borrowing based on a municipal value foundation. Kommuninvest borrows money on the national and international capital markets and has the highest possible credit rating, AAA/Aaa. Kommuninvest has the lowest possible risk rating (BIS 0 percent). The company is a monetary counterparty in the Swedish Riksbank.

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