KommuneKredit is a financial institution that specialises in lending to local governments in Denmark or entities guaranteed directly or indirectly by these local governments. Hence KommuneKredit can not extend the client base outside the Kingdom of Denmark. The financing of local governments is performed according to regulation restricted to financing capital expenditure, not current expenditure or commercial projects.


Danish local governments are considered to be highly creditworthy due to the right to levy taxes on income and property and the fact that thus far local governments have not been allowed to go bankrupt. As a result of this KommuneKredit has never suffered any losses on its loan portfolio.


The loans and facilities made available are unsecured and have different maturities depending on the type of financing involved – currently ranging up to 25 years. Loans are offered in both DKK and in foreign currencies and are either repaid at maturity or by instalments. KommuneKredit also offers individually structured loans to its clients. Interest is payable on the basis of a fixed or floating rate, at the option of the clients.


KommuneKredit is a non-profit organisation and only charges fees to cover administrative expenses.


KommuneKredit is the largest single lender to the local governments in Denmark with a significant market share of all Danish local government financing.


In addition, KommuneKredit offers leasing through KommuneLeasing, a division of KommuneKredit, which provides financial leasing services to local governments in Denmark or entities guaranteed directly or indirectly by these local governments. The contracts entered into by KommuneLeasing are primarily based on financial leasing. Contracts include, for example, the leasing of motor vehicles, technical acquisitions, hospital equipment and ferryboats. The activities are financed through KommuneKredit .