Funding for local Danish growth

KommuneKredit is a Danish local government funding agency, providing funding for local growth and the green transition in municipalities and regions across Denmark. We can disburse loans for purposes ranging from energy renovation of a local sports centre to the purchase of a new eco-friendly hybrid ferry, or the establishment of more sustainable district heating systems.

localfunding
Two men playing padel tennis

A local government funding agency

KommuneKredit was established by a special Act in 1898 and is legally organised as a credit institution under Danish law. Our members include all the 98 municipalities and the five regions in Denmark. The purpose of KommuneKredit is to provide financing for of projects in municipalities, regions and affiliated entities – at the lowest possible cost. We don't have to make a profit, and we don't pay dividends. Consequently, our profitability can be measured in terms of the low lending rates we offer our customers when they need to finance their projects. KommuneKredit is supervised by the Danish Financial Supervisory Authority (FSA).

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Facts

125 years

No losses

KommuneKredit has never suffered any losses on loans or leases

0%

Risk weight

Our bond issues have a credit risk weight of 0 per cent according to CRR/CRD

HQLA Level 1

Liquidity category

Our bonds are liquid and low-risk. They are in the highest liquidity category under the LCR Delegated Act.

equalopportunities

Equal opportunities across the country

No matter the scale or location of a project in Denmark, we provide financing at the lowest possible cost and on equal terms. Our approach guarantees equal opportunities across the country, promoting cohesion and enabling municipalities and regions to maximise growth and development – for the benefit of Danish citizens.

The maps display total lending of each municipality and total lending per capita in each municipality. The darker the colours, the larger the lending amounts. The absolute lending map indicates that large municipalities borrow the most money. In contrast, the per capita map reveals that municipalities with few inhabitants – particularly in sparsely populated peripheral areas of Denmark – take greater advantage of the opportunities we offer.

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Loans and leases for many purposes

Discover how our loans and leases finance diverse projects across the Danish society, including investments in green and social initiatives.

The structure of the Danish public sector

Municipalities and regions are the backbone of the Danish welfare society. Learn more about the structure of the Danish public sector.

International comparative analysis

The Danish Center for Social Science Research, VIVE, has published a report on local government borrowing in Denmark and the role of KommuneKredit.

Sustainable issuer

Our ESG approach

The purposes we finance are all democratically decided upon and to the benefit of communities in Denmark. We aim to reflect these cha­ra­cte­ri­sti­cs in everything we do. Currently, our green bond programme represents about 12 per cent of our loans. However, the majority of the remaining loans can also be related to ESG purposes.

Read more about our ESG approach

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Projects we have financed

See all cases

Contact us

If you would like to know more about treasury and sustainable financing in KommuneKredit, please feel free to contact us.

Treasury

fundingmail@kommunekredit.dk+45 3311 1512

Sustainable finance

bf@kommunekredit.dk+45 3311 1512

Telephone hours

Monday - Friday