KommuneKredit launches new 8-year EUR 750 million benchmark
On Wednesday 10 November 2021, KommuneKredit launched and priced a new 8-year EUR 750 million issue with a reoffer spread of MS -1 bp, which equated to 44.9 bps over the DBR 0 % August 2029 reference. The transaction priced with a 0 % annual coupon, a reoffer price of 99.872 % and 0.016 % reoffer yield.
The orderbook exceeded EUR 1.7bn with nearly 70 investors involved and the final spread was 3bps tighter than initial guidance and 1bp through fair value.
This was KommuneKredit’s 3rd EUR benchmark in 2021, following the EUR 1bn 10-year in February and EUR 500m tap of 0.01 % 2034 in September. The transaction finalises KommuneKredit’s benchmark funding programme for 2021. Approximately EUR 6bn equivalent has been raised during the year, which is in line with communicated strategy.
“This is our third and final EUR issuance this year, and we're very satisfied with the result. By issuing a new 8-year EUR 750m transaction, we're adding coherence and liquidity to our EUR curve. The final size and reoffer price underline the strong book with high quality investors,” says Louise Rosentoft, Senior Funding & IR Manager, KommuneKredit.
Comments from the Joint Lead Managers
“Congratulations to the KommuneKredit team for yet another successful transaction in what has been an intense year. To execute such a solid trade with a negative concession given the current volatile market backdrop, is a true testimony to the constant support of KommuneKredit's loyal and diversified investor base even during trickier markets.”
- Salma Guerich, DCM SSA at BNP Paribas
“It was an absolute privilege for Citi to have participated in KommuneKredit’s new 8yr benchmark. The transaction was met with such investor enthusiasm that we were able to print their maximum size at a reoffer level 1bp through their outstanding secondary curve. The tremendous book quality was a testament to the high regard in which the KommuneKredit name is held by the investor community. Congratulations to the team.”
- Alex Barnes, Head of SSA Syndicate at Citi
“Congratulations to the KommuneKredit team for a fantastic result in their final EUR benchmark issue for the year achieving their maximum targeted volume at final pricing through fair value with a top quality and granular order book. Danske Bank is proud to have supported KommuneKredit in another successful EUR benchmark issue.”
- Gustav Landström, Head of SSA Origination at Danske Bank
“KommuneKredit achieved yet another excellent outcome with its new 8-year Euro benchmark in its highly-successful funding year to date. The deal generated remarkable investor demand, supported by the positive yield on offer, enabling a EUR750m size print whilst pricing through fair value. The breadth, quality and limited price sensitivity within the orderbook is testament to KommuneKredit’s broad recognition in the capital markets.”
- Shadé Sharaka, SSA Syndicate at HSBC