KommuneKredit issues a new 5-year USD benchmark and completes switch and tender offer

On 3 June 2020 KommuneKredit completed the issue of a new 5-year USD 1bn benchmark and a switch and tender offer for existing investors in two outstanding USD benchmarks.

The switch and tender announcement for the two outstanding USD benchmarks was published on 2 June 2020 alongside the mandate for a new 5-year USD benchmark. Books for the new benchmark was officially opened on 3 June 2020. Based on indications of interest from a broad group of international investors for more than USD 2bn the price for the bonds was indicated to the market at USD mid-swaps +28 bps area. Within 40 minutes books totalled more than USD 3.6bn and were closed at 9.20 London time. Final pricing was set at mid-swaps +26 bps.

Read more details in the press release here.

The switch and tender offer for the two existing benchmarks was also very well received in the market. The final result was a total buyback amount of USD 191m.

Read the official announcement here.

Joint Lead Managers on the new issue and the switch and tender offer were: Barclays, BNP Paribas, JP Morgan and TD Securities.