Successful first USD Benchmark of 2019

KBN issued its first USD benchmark of the year on January 29th. The transaction enjoyed exceptionally strong and high quality demand.

The USD 1,25 billion 5-year Benchmark enjoyed an immediately strong response from the outset, with demand surpassing USD1.3bn by the time that the orderbook officially opened at 8.00am GMT on Tuesday morning. Given the demand already indicated, price guidance was tightened by 1bps to mid-swaps plus 16bps area. The final orderbook closed in excess of USD2.6bn, allowing KBN to revise pricing by 2bps. 

Head of Funding & IR at KBN, Thomas Møller was pleased with the transaction: 
This was a great trade. It ticked all the boxes — execution went perfectly, and a textbook issuance. The market was very constructive as it has been for the whole of January, said Møller.

Over 60 investors participated in the transaction, with exceptionally strong participation from Central Bank’s and Official Institutions, who took 75% of the final allocation.

Adrien de Naurois, Managing Director, SSA Syndicate at BofA Merrill Lynch
A great result for Kommunalbanken with their first USD benchmark of the year and the first 5-year USD benchmark from their peer group. KBN was able to capitalise on very strong demand from investors, pricing with minimal concession to their outstanding curve.
Spencer Dove, Managing Director, Head of SSA DCM at Nomura
A fantastic result for KBN with their annual 5-year US$ benchmark. A reassuringly strong orderbook with final orders in excess of 2.6bn and over 70 accounts participating demonstrate the very broad appeal of the issuer. The continued success of KBN’s US$ benchmark programme is testament to the tireless efforts of the funding team in engaging with the global investor community.
Kerr Finlayson, Director, Head of SSA Syndicate at RBC Capital Markets
A superb trade to open KBN's $ benchmark account for the year. An incredibly well diversified orderbook is testament to the high esteem they are held in across the SSA investor universe. We said last year that their January 5yr trade would be tough to beat and indeed it looks like they just did!
Laura Quinn, Managing Director, Origination & Syndication at TD Securities
This was a fantastic outcome for KBN in what was their first foray into the USD benchmark space in 2019. They managed to avoid competing supply and achieve a very high quality final orderbook of over US$2.6bn while simultaneously attaining very competitive pricing.

Final Terms

Price Date:
Payment Date:
Maturity Date:
Reoffer Spread:
Joint Lead Managers:
Kommunalbanken Norway (“KBN”)
Aaa (Stable) / AAA (Stable) by Moody’s / S&P
Fixed Senior Unsecured Notes
2.750% semi-annual
USD1.25 billion
th January 2019
th February 2019
th February 2024
Mid-Swaps + 15bps / CT5 + 23bps
BofAML, Nomura, RBC Capital Markets (B&D), TD Securities


Kommunalbanken Norway (KBN) finances important welfare services through providing credit to the local authorities in Norway. KBN is defined as a state instrumentality, having a public policy mandate from the central government to provide low cost financing to the Norwegian local government sector.
KBN's lending to the local government sector is funded by issuing securities in the international capital markets maintaining the highest possible credit rating. KBN is a wholly owned state company.
KBN has an expected long-term borrowing programme of USD12-14 billion in 2019