Funding breakdown

The objective of KBN's funding operations is to meet growing borrowing requirements in the Norwegian local government sector. This is done through a diversified funding base, effectively achieved by regular issuance of USD and EUR benchmark transactions, a visible presence in other public markets and offering flexibility through private placements. In 2017, KBN issued a total of USD 14 billion via 269 individual transactions in 13 different currencies.

KBN is targeting an estimated total issuance of USD 14 billion equivalent in 2018.

Benchmark

KBN is committed to further developing its benchmark strategy by:

  • Strengthening our presence as a recurrent, high quality benchmark borrower.
  • Carefully considering timing period and demand to meet key investor appetite and increasingly widen distribution.
  • Securing performance through fairly-priced, fully book-built transactions and a well managed execution process.
  • Closely co-operating with lead managers to ensure continued secondary support and performance.
  • KBN's current funding requirement allows for 2-3 annual USD benchmark transactions.
  • As a natural continuation of KBN's diversified funding strategy KBN plans to be a regular issuer of EUR benchmarks going forward. KBN has issued 3 EUR denominated benchmarks and will continue to build its curve on this important benchmark market.

Benchmark issuance target: 35-50% of overall funding

 

Retail issuance

  • KBN continually monitors new local markets for opportunities to enrich its funding strategy.
  • A key factor in KBN's success is our flexibility to meet demand for various currencies and tenors and our short response time on new ideas.

Retail issuance target: 5-10% of overall funding

 

Private placements

  • KBN aims to maintain a strong relationship with investors and is accommodative of investor needs for tailor-made private placements.
  • KBN offers a variety of funding products.  KBN is open for maturities from 3 months to 30 years, in bullet and multi-callable structure varieties (max. 15 year maturity for bullets), with a minimum issuance size of USD1m or JPY100m.

PP issuance target: 5-15% of overall funding

 

Institutional niche markets

KBN focuses on strong investor diversification by continuing to nurture its presence in smaller public markets. Our key markets today include:

  • Norway
  • Switzerland
  • Australia
  • New Zealand
  • Canada
  • United Kingdom

Institutional public issuance target: 25-35% of overall funding