News -
KommuneKredit launches new 7-year CHF 225 million benchmark
On Thursday 11th May, KommuneKredit priced a new CHF 225 million June-30 benchmark.
Thursday morning 11thMay KommuneKredit engaged BNP Paribas and Deutsche with the intent to issue minimum 100 million CHF. The orderbook officially opened at 09:55 CET with a guidance of SARON MS-16 area.
After strong investor interest the size was increased to 200 million at 10:50 and at 11:25 CET the final spread was set at SARON MS-16, the tightest foreign print in CHF this year, and the book closed at 225 million CHF.
At 12:20 CET, the transaction officially priced at SARON MS-16bp, equivalent to a reoffer yield of 1.590%.
In terms of geographical distribution, the transaction was allocated to more than 30 investors in Switzerland. In terms of investor type, Asset Managers were allocated 43% of the bonds, while the transaction also attracted strong participation from Bank Treasuries (32%).
Statement from KommuneKredit:
“We are pleased to reengage with the Swiss investors in their domestic market and to experience the strong interest in our name. This market has provided us good funding opportunities for many years.” Louise Rosentoft, Senior Funding & IR Manager
Lead Manager Quotes
“Congratulations to the KommuneKredit team for successfully launching their first CHF transaction of the year. KommuneKredit's ability to seize the right window and take advantage of favorable market conditions allowed them to capture a diverse investor demand and raise the largest transaction since 2015 while crystallizing an attractive funding level vs. their EUR curve.” Salma Guerich, SSA DCM, BNP Paribas
“Congratulations to the KommuneKredit team on a successful CHF outing. This marks the tightest CHF print from a foreign issuer year-to-date and KommuneKredit’s largest single tranche benchmark in the currency, testament to the issuer’s appeal to high quality Swiss investors. Deutsche Bank is proud to have participated in this transaction.” Lukas Lippenmeyer, SSA DCM at Deutsche Bank.
