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KommuneKredit’s first green transaction under the updated Green Bond Framework 2022

Press release -

KommuneKredit’s first green transaction under the updated Green Bond Framework 2022

On Monday 30th May 2022 at 13:01 CET, KommuneKredit mandated four banks to arrange a Global Investor Call to present its recently updated Green Bond Framework, announcing that a EUR 500m (no grow) short 7-year green benchmark would follow, subject to market conditions.

The orderbook officially opened on Tuesday the 31st of May at 08:52 CET, with an initial spread guidance of MS-3bps area.

On the back of a smooth book building process with orders in excess of EUR 975m final terms were announced at 10.46 CET. The spread was set at MS-5bps reflecting a negative new issue premium of 1bp.

In terms of geographical distribution, the transaction was broadly diversified across Europe, with the largest proportions of investors coming from the Nordics (28%), Benelux (24%) and Germany, Austria and Switzerland (21%). In terms of investor type, asset managers were allocated 35% of the bonds, while the transaction attracted also a good participation from banks (30%), central banks / official institutions (21%), and Insurance Companies / Pension Funds (14%).

Statement from KommuneKredit:

Guri Weihe, Head of Sustainable Finance, KommuneKredit

We are very pleased that the first green bond issued under our updated Green Bond Framework has been well received in the market. At KommuneKredit, it is a priority to support the sustainable transition locally in Denmark by providing cost-efficient finance for sustainable public purpose infrastructure. With the updated Framework, we aimed to set a high standard for our green financing. The market receipt of our EUR Green Bond indicates that we succeeded in our efforts.

Statements from Joint Lead Managers:

Gustav Landström, Global Head of SSA Origination, Danske Bank:

- An excellent result for KommuneKredit today returning to the EUR Green Bond market with a new 7-year benchmark at final pricing through fair value. In a volatile and window driven market, KommuneKredit displayed great market understanding by moving ahead quickly following the update of their Green Bond Framework in order to take advantage of the stable and clear market conditions offered following the Ascension and Memorial Day weekends. Danske Bank is proud to have supported KommuneKredit in updating the Green Bond Framework and to issue this successful Green Bond benchmark.

Achim Linsenmaier, Managing Director, Global Head of SSA DCM Origination, Deutsche Bank.

- Despite a challenging and volatile market backdrop, KommuneKredit’s new Green Bond was very well-received. The transaction attracted a strong and high quality orderbook dominated by Real Money accounts, highlighting KommuneKredit’s top-tier credit quality and investor support for its Green Bond projects that support the green transition in Danish local societies. Deutsche Bank is proud to have supported KommuneKredit in this transaction.

Olivier Vion, Head of SSA Capital market, Société Générale

- With this new Green Bond, KommuneKredit is supporting a greener Denmark, but it is also bringing liquidity to its Euro bond curve with a transaction that crystallizes a nice greenium, defying volatile market conditions. Investors responded very positively, and the transaction was quickly oversubscribed, allowing a smooth execution. Congratulations to the KommuneKredit team!”

Adrien de Naurois, Managing Director, Head of DCM SSA & EMEA IG Syndicate, BofA Securities.

Congratulations to the KommuneKredit team for the latest EUR outing during a volatile window in broader markets. The investor reception to the transaction highlights the broad support KK enjoys, both as a credit but also as an ESG issuer following the recently updated Green Bond Framework.


KommuneKredit is an association, whose purpose is to provide lending to municipalities and regions and companies with a 100% municipal guarantee.

The association is the municipalities and regions own credit institution and exist solely for our clients.


Jens Lundager

Jens Lundager

Press contact CEO +45 3369 7622