New 5-year USD benchmark draws record orderbook
On Wednesday 17th January, KBN successfully priced a new USD 1,5 billion 5-year benchmark.
- Hard to get a better start to our 2024 funding program, a stellar USD market, a record number of orders and a record book size allowing for a 3bp. tightening from IPT, followed by another 3bp. performance at the break makes for a great trade, says Thomas Møller, Head of Funding & IR at KBN.
Highlights
- KBN’s largest ever USD orderbook closed in excess of USD 6.8 billion (incl. USD250m JLM)
- USD 1.5 billion deal size marks KBN’s largest USD 5-Year Benchmark since January 2021
- The first USD SSA Benchmark from a Nordic Agency issuer in 2024 YTD
- Strong participation from Central Banks / Official Institutions and Banks / Private Banks, taking 54% and 30% of the final allocations respectively
Read more in the press release (PDF)
In addition to the successful new 5-year USD Benchmark, KBN has also been active at the start of year issuing two new Green Bonds.
KBN kicks off the new year with two new Green Bonds
On the 4th of January, KBN opened its 2024 Funding Programme with a new CAD 5-year Green Benchmark. This transaction marked the first CAD trade from an Agency issuer in 2024 and was KBN’s fourth CAD Green Bond since its inaugural CAD Green Benchmark back in October 2021. The deal was strongly supported by Banks (65.5%) and Central Banks & Official Institutions (23.3%) and was well placed with domestic Canadian and other investors from the Americas (73.3%).
Read more in the press release (PDF)
Then on 5th January, KBN priced a new SEK 3 billion 3-year Green Bond. This was KBN’s third SEK Green Bond after completing its inaugural SEK Green Bond back in 2019. The deal was well placed with domestic Swedish investors with a strong focus on ESG investments.
After the USD Benchmark, KBN has completed over USD 2 billion equivalent of its USD 10 billion Funding Programme for 2024.