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KommuneKredit launches first Green Bond in Sterling market

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KommuneKredit launches first Green Bond in Sterling market

KommuneKredit announced a mandate for its inaugural GBP 250mn Dec 2024 Green Bond on Wednesday 13th October at 9.45am London time. Books opened at a reoffer spread of UKT +26 bps area. The spread was set in line with initial guidance at UKT+26bps with books reported in excess of GBP 185mn (excl. JLM interest) within 2 hours of books opening. Books closed at 12.30pm London time, and the bond was priced at 1.24pm London time at a spread of +26bps over the UKT 1% April 2024 Gilt with a coupon of 0.750%, offering a yield of 0.789%.

The orderbook was made up of a variety of high-quality investors, with the majority of allocations going to Banks (67%) and Fund Managers (23%), including dedicated ESG portfolios. Central Banks/Official Institutions took 6% with the remaining 4% going to other investors. By geography, UK investors took the lion’s share (70%), followed by Asia and EMEA with 16% and 14% respectively.

“We're very pleased to honor our commitment to the Sterling market by issuing our first green benchmark in GBP. It once again highlights KommuneKredit's strategic commitment to the Green Bond market,” says Senior Funding and IR Manager Louise Gregersen, KommuneKredit

Comments from the Joint Lead Managers

“Congratulations to the KommuneKredit team on their inaugural Green Sterling line, making them the first Nordic agency to tap into the growing investor demand for green assets in the currency. The seamless intra-day execution highlights KommuneKredit’s ability to be agile in responding to a constructive market, along with their commitment to building out a curve in Sterling following their return to the market earlier this year. Citi is delighted to have been involved in this milestone transaction.” – Ebba Wexler, Managing Director, SSA DCM, Citi

“Congratulations to the KommuneKredit team for their inaugural Green Bond in the Sterling market. This transaction again highlights KommuneKredit’s commitment to diversifying and broadening its Green Bond programme, having already issued in the EUR and AUD markets. Becoming the first Nordic agency to launch a Green Bond in the GBP market is a remarkable milestone and sets the tone for further issuance from the region. Deutsche Bank is honoured to have accompanied KommuneKredit on this outing”, Achim Linsenmaier, Global Head of DCM Public Sector Origination, Deutsche Bank

"Congratulations to the KommuneKredit team on their inaugural Green Sterling benchmark - becoming the first Nordic agency in the market. A timely issuance given the increased global focus on the climate crisis, ahead of the UK hosting COP26 in November, and momentum in the market following the inaugural Green Gilt in September." Vinay Parmar, HSBC Bank plc


Press contacts

Jens Lundager

Jens Lundager

Press contact CEO +45 3369 7622

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