Strong Demand for Kommuninvest’s Latest Green Bond

    Stockholm (NordSIP) – At the start of March, Kommuninvest issued a new three-year US$1 billion Green Bond. Credit Agricole CIB, J.P. Morgan, Nomura and SEB acted as joint-lead managers. The proceeds of the bond will be used towards financing eligible projects under Kommuninvest’s Green Bonds Framework including but not limited to renewable energy, energy efficiency, green buildings, clean transportation, and waste and water management.

    The bond pays a 0.375% coupon and was priced 1 basis point (bp) above mid-swaps and 19bps above corresponding US Treasuries. 62 international investors participated in this transaction. Sectorally, 60% of the bonds were purchased by central banks or official institutions. Another 21% went to fund managers, followed by 14% to bankers and 5% to corporates and other undisclosed investors. Geographically, investors were aggregated in very broad categories. 34% were domiciled in the Americas, and the same share came from Asia, while 32% were based in Europe, the Middle-East and Africa (EMEA)

    “We continue to meet strong demand in the USD market. Today, I was particularly pleased to see such a broad interest in a new Green Bond. Thanks to the impressive sustainability work carried out by Swedish municipalities and regions, where the growing portfolio now exceeds 430 green investment projects, we are continually taking important steps forward in the development of green finance,” says Tobias Landström, Deputy Head of Debt Management at Kommuninvest.

    Following this transaction, the 12th green bond issued by Kommuninvest, the Swedish municipal borrower now has a total of approximately US$6 billion outstanding in seven Green Bonds – four of which are in Swedish Krona and three in US Dollar.

    “A fantastic outcome of Kommuninvest’s first USD trade of the year which is the Issuer’s 4th Green Bond in USD currency to date. Kommuninvest now have US$6 billion equivalent of green bonds outstanding in SEK and USD which is a testament to Kommuninvest’s strong environmental commitment. I speak for the full team at SEB when I say that we are very pleased to contribute to this successful transaction,” Karl-Johan Nystedt, Head of SSA Origination at SEB, added.

    Image by 3D Animation Production Company from Pixabay

    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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