KBN facts

KBN's mandate is to secure competition in the market for municipal loans enabling the local government sector to provide the most welfare to its inhabitants for each krone available.


  • Established by a special Act of Parliament in 1926/1999
  • 100 per cent central government owned
  • KBN is classified as a state instrumentality serving a public policy function of providing low cost funding to the Norwegian local government sector
  • KBN is the largest lender to Norwegian municipalities providing approximately 50 % total credit to the sector
  • Excellent asset quality, no loan losses in 90 years of operations
  • All loans limited to Norwegian local government, primary welfare investments
  • Conservative risk management, solid capital base
  • KBN is today the highest rated Norwegian agency
  • KBN represents the closest proxy to Norwegian sovereign risk in international markets


  • The objective of KBN's funding operations is to meet growing borrowing requirements through a well diversified funding base
  • KBN is committed to preserving long-term investor relationships through:
  • Regular issuance of private placements and strategic benchmark transactions in USD. Established a EUR benchmark program in 2014
  • A visible presence in smaller public markets with repeat issuance in local currencies including GBP, CHF, AUD, CAD, NZD and NOK.
  • Continued development of KBN as a household name in European and Asian retail markets
  • KBN facilitates global funding enquiries through KBNet, an online interface for funding across international time zones
  • In 2016, KBN issued a total of USD 10 billion via 303 individual transactions in 12 different currencies.
  • KBN is targeting an estimated total issuance of USD 11-12 billion equivalent in 2017. KBN will actively look to raise its funding across its four key funding markets.  Benchmarks, both in USD and EUR, Institutional niche markets (such as the AUD, CHF, CAD, GBP, NZD and NOK) Private Placements and Japanese Uridashi retail market.


  • A provider of vital services to the Norwegian public, in areas such as healthcare, education, transport and infrastructure
  • ‘One of the strongest local government sectors in any country rated’ (Standard & Poors)
  • The close relationship between the central government and the municipal sector is characterised by strict central government control, regulation and oversight
  • Norwegian local government are prohibited by law from filing for bankruptcy.

Read about the Norwegian local government sector as an investment case.


  • The Kingdom of Norway (AAA/Aaa) is one of the strongest economies globally with solid fundamentals and a highly developed industrial base
  • Norway has the worlds second largest GDP per capita and the highest standard of living according to the UN Human Development Index
  • Capacity utilization in the economy has remained high, the current account surplus considerable (7% 2016) and government finances are solid. Currently, Norway’s SWF, the State Pension Fund - Global, stands at approximately USD 950 billion (over 225 % of 2016 GDP and over 600% of the national budget).

Read an update on Norwegian Economy