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Solid demand for 7-year addition to Swedish Benchmark Programme

Yesterday’s issue of a 7-year bond in Kommuninvest’s Swedish Benchmark Programme demonstrated faith in the Swedish Local Government Debt Office. A total of SEK 3.1 billion was issued and the bond, labeled K1708, thus achieved benchmark status already on the day of issue. ”This issue will provide Swedish municipalities with access to long-term funding at really competitive pricing”, says Pelle Holmertz, Treasurer på Kommuninvest. The issue was fully subscribed within an hour and pricing was fixed at 75 basis points above the Swedish Government Bond 1051, which also matures in August,

Kommuninvest issues 7-year bond in Swedish Benchmark Programme

Kommuninvest continues to build volume in its Swedish Benchmark Programme. Due to demand from Kommuninvest’s borrowers, Swedish municipalities and county councils, Kommuninvest has decided to issue a 7-year bond, K1708. The bond will be a copy of the Swedish Government Bond 1051, maturing in August, 2017. The coupon will be 4 per cent. ”An increasing number of municipalities are looking for longer-term funding. We also see solid demand for long-term bonds among investors,” says Kommuninvest Treasurer Pelle Holmertz. Kommuninvest seeks to obtain benchmark status, e.g. an issued volume

The ratings, AAA, on Kommuninvest reflect Standard & Poor's positive view of the company

Standard & Poor’s has issued its annual credit report for Kommuninvest of Sweden. “The ratings on Sweden-based local government funding agency Kommuninvest i Sverige AB reflect Standard & Poor's Ratings Services' positive view of the company's guarantee structure, asset quality, liquidity, matching principles, and market position.”(Source: Standard & Poor`s Global Credit Portal, RatingsDirect, June 30, 2010)  Standard & Poor’s has identified a number of strengths for Kommuninvest: · Obligations covered by a joint and several guarantee that is signed by all members. ·

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