Kommuninvest Issues Second Largest SEK Green Bond

    Stockholm (NordSIP) – On November 19th, Kommuninvest issued a new SEK7 billion Green Bond maturing in November 2027. This was Kommuninvest’s eleventh green transaction, and its largest one in Swedish Krona, second only to the one conducted by the Swedish Government, earlier this year.

    Proceeds from the bond will be directed to projects consistent with Kommuninvest’s Green Bonds Framework, which focus on eight categories of local and regional investment projects: ranging from renewable energy and green buildings to climate change adaptation and clean transportation.

    The bonds pay a 0.25% annual coupon and were priced at a 99.68 discount, 11 basis points (bps) above mid-swaps to provide a positive 0.296% reoffer yield. The transaction attracted demand worth SEK9.5 billion from 32 individual investors.

    Swedish investors represented 47% of the investors in this security.  Investors domiciled in the UK and Ireland (20%), other Nordic countries (17%), as well as other European (20%) and remaining miscellaneous countries (1%) purchased the rest of the bond. Sectorally, asset managers (30%) were dominant, followed by central banks and official institutions (25%), pension funds and insurance companies (21%), banks (20%) and other undisclosed investors (4%). Handelsbanken, SEB and Swedbank acted as Joint Lead Managers on this occasion.

    “I am glad to see the very positive dynamics of green financing. Many municipalities and regions are moving quickly forward in the development of green investment projects. At the same time, investors are showing strong interest in our Green Bonds. Today, it was particularly positive that more than half of the order book consisted of international investors. So far, the green trend seems to have intensified, rather than weakened, during the Corona pandemic,” says Tobias Landström, Deputy Head of Debt Management at Kommuninvest.

    After the completion of this transaction, Kommuninvest has a total of approximately SEK42.5 billion outstanding in six Green Bonds, four of which are in SEK and two in USD.

    Image by andreas160578 from Pixabay

    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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