KommuneKredit priced new 5bn DKK long 3-year benchmark

On Tuesday 7th of May, KommuneKredit issued a new DKK 5 billion long 3-year transaction at DKK MS-31bps.

On Tuesday 7th of May, KommuneKredit issued a new DKK 5 billion long 3-year transaction at DKK MS-31bps. The transaction marks the beginning in establishing a liquid product in the shorter end of the DKK market and it is KommuneKredit’s intention to be a reoccurring, annual issuer in this format.

On Monday 29th of April KommuneKredit published a mandate announcement for a new long 3-year DKK Benchmark and stated the intention to establish a new liquid DKK curve in the Danish market. Following the announcement, KommuneKredit engaged in numerous investor meetings with both domestic and international investors.

The transaction attracted interest from the onset and by the time of book opening at 09.00 CET on the morning of Tuesday 7th of May, indications of interest were in excess of DKK 5.5bn. Guidance was announced at DKK MS-30bps area.

The orderbook grew to exceed DKK 7.3bn (including 1.5bn JLM interest) during the first hour of opening, allowing for final terms to be sent out at 10.30 with the spread set at DKK MS-31bps and issue size of DKK 5bn. Books were subject to close at 11.00 CET leaving time for investors to come in with final orders.

At 11.00 CET, the orderbook closed in excess of DKK 9bn (including 1.75bn JLM interest) from close to 30 individual accounts.

In terms of geographical distribution, all investors came from the EMEA region with the majority being domestic, adding two UK and one Nordic investor. Asset Managers accounted for the largest share of 46% followed by strong support by Banks & Bank Treasuries at 32%, Central Banks & Official institutions at 13% and Fund Managers /Pension Funds at 9%.

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