KommuneKredit off to a good start with 5Y USD benchmark

On Thursday 21 January, KommuneKredit priced a USD 1 billion benchmark issue with the tightest spread to date. The issue is a good omen for 2021 during which KommuneKredit expects to issue bonds for more than DKK 35 billion in strategic core markets in EUR, USD and DKK.

The order books closed with orders of more than USD 2.4 billion, when KommuneKredit priced its first benchmark of the year – USD 1 billion with a 5-year maturity. The mandate was officially issued on Wednesday 20 January and interest was great from the start – especially from central banks world-wide who bought 40% of the issue.

The transaction extends KommuneKredit’s USD-curve with a new 5-year point. Final pricing was 3 bps tighter than initial pricing which is the result of a strong investor interest combined with favourable market conditions.

KommuneKredit launched the issue in collaboration with lead managers: BofA Securities, BMO Capital Markets, Daiwa Capital Markets and RBC Capital Markets.

First venture signals good start for 2021

KommuneKredit has had a good start to the year in terms of raising the funding necessary to offer loans to our customers. This first issue is part of the associations strategy to underpin access to USD-investors – especially central banks, official institutions, supranationals and banks.

For further details on the issue read more in related file.