"Given that an increasing number of municipalities and county councils are seeking longer maturities, we see an opportunity to introduce a seven-year bond," says Anders Gånge, Head of Funding & Treasury at Kommuninvest. "We plan to issue a ‘copy' of the Swedish government bond SGB 1051 and intend to achieve a benchmark volume as quickly as possible, that is, SEK 3 billion."
The issue would entail the local government bond programme consisting of three bonds; the existing two-year K1210 bond, the five-year K1508 bond, and now a seven-year bond, provisionally labelled K1708.
The issue would entail the local government bond programme consisting of three bonds; the existing two-year K1210 bond, the five-year K1508 bond, and now a seven-year bond, provisionally labelled K1708.
"In connection with the issue, Kommuninvest may be interested in making swaps, primarily between K1210 and the new K1708. It should be noted that the issue of K1708 does not affect the total volume in our borrowing projections for 2011," Anders Gånge concludes.
Additional information will be published in February.
For further information, please contact:
Anders Gånge
Head of Funding & Treasury
Tel.: +46 (0)70-6167510.
