KommuneKredit starts 2018 with a new 3-year USD benchmark and a Tender and Switch Offer in 3 series

KommuneKredit opened the international capital markets by issuing the first benchmark of 2018 – a 1bn 3-year Fixed Rate issue in USD.

From the announcement on 2 January 2018 to the books officially closed on 3 January at 11 am Copenhagen time there was a great demand for the issue. The bond started with an indication on mid swaps + 9 area, but after the order book grew to just below USD 2bn., KommuneKredit could tighten the price twice to a final price on mid swaps + 7. Together with the new bonds KommuneKredit also launched a Switch and Tender Offer, where the investors in three existing KommuneKredit bonds, – a floater maturing in February 2018 and two Fixed Rate bonds maturing in March and August 2018 respectively – could sell their bonds to KommuneKredit. The buyback was a big success with a total amount of USD 659.420.000.

The quartet consisting of Bank of Montreal, BNP Paribas, Daiwa Capital Markets and J.P Morgan were joint Lead Managers on both the issue and the buyback.

The order book had a strong distribution – both with respect to geography and investor type – please see the press release for details.