KommuneKredit launches a new 5-year USD benchmark and a Tender and Switch Offer

KommuneKredit has today successfully launched a new 1bn 5-year fixed rate issue in USD.

The new issue was popular with many investors and within two hours the order book grew to more than USD 2bn. In connection with the new bond offering, KommuneKredit also launched a Switch and Tender Offer where investors in two existing KommuneKredit bonds, maturing in January and March 2018, could sell their bonds to KommuneKredit at par. The Switch and Tender option was interesting to quite a few investors and made it possible for KommuneKredit to tighten pricing on the new bonds to the final pricing at mid-swaps +17 bps.

In total KommuneKredit accepted Switch and Tender Offers from investors of USD 224,199,000.

Bank of America Merrill Lynch, HSBC, Nomura and Toronto Dominion acted as Joint Lead Managers on both transactions.


Read the press release here