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KBN reached the end of H1 2016, raising approximately 60% per cent of its annual total funding volume across a variety of different markets.  As of June 30, KBN has raised USD 5.8 billion equivalent, via 163 trades across 10 different currencies.

Throughout Q2, KBN continued to see solid global demand across the curve as investors sought exposure to KBN and Norway, given the country’s stable political environment and solid fiscal position.  KBN is 100% owned by the Kingdom of Norway and as a result, is widely regarded as the best proxy for the Kingdom in international debt markets.   

Funding highlights throughout the quarter included KBN’s return to the Euro market with a 10-year EUR 1.0bn benchmark transaction, issuance in the USD FRN market and continued participation in the Kangaroo and Kauri markets.  In addition, KBN remained active with solid issuance in the Uridashi and private placement markets.

KBN returns to the EUR market with 10-year benchmark

On 13th April 2016, KBN made its successful return to the EUR market by issuing a EUR 1bn 10-year benchmark. The new transaction, KBN’s second EUR benchmark after its inaugural issued in April 2014, is due on April 20th 2026, pays a coupon of 0.625% and priced with a spread of 9bps over mid-swaps, equivalent to 48.5bps over the DBR 0.500% February 2026.

With limited price sensitivity and a final orderbook in excess of EUR 1.4bn, KBN managed to price inside initial guidance at mid-swaps +9bps.   There were over 50 accounts involved with Banks dominating final allocation taking 46% of the bonds.  Asset Managers accounted for 27%, Central Banks and Official Institutions 25% and Pension Funds / Insurance Companies 2%.  In terms of investor geography, Germany and Switzerland accounted for 46%, Benelux 22%, Other Europe 30% while Asia and Americas both accounted for 1%. 

This successful transaction, representing KBN’s longest ever outing in Euros, sets an important milestone for KBN's funding and demonstrates the strong commitment from the EUR investor base.

               Investor Type                         Investor Geography

Q1 Results released

KBN’s net interest income in the first quarter was NOK 502 million compared to NOK 399 million in the same period last year. The increase is due to stable operations and solid margins on KBN’s lending portfolio and on its investments in the liquidity portfolio.

Profit for the first quarter was NOK 257 million as compared to NOK 39 million in the same period of last year. This is mainly owing to an increase in net interest income and decrease in net unrealised losses on financial instruments compared to the first quarter of 2015. 

KBN’s new disbursements amounted to NOK 14.0 billion compared to NOK 16.8 billion in the first quarter of 2015. The lending portfolio increased by 1.7% relative to a 3.0% increase for the same period of last year. KBN prioritized long-term loans in the first quarter and the volume of short-maturity loans decreased.

At the end of the first quarter of 2016, KBN had a common equity Tier 1 capital adequacy ratio of 14.91% and a Total capital adequacy ratio of 18.58%.  KBN achieved a return on equity after tax of 9.6% in the first three months of 2016.


For the full Q1 report

KBN maintains Institutional activity

Despite a satisfactory liquidity situation and a moderate funding programme for 2016, KBN has continued to maintain its presence in Institutional public markets.  Throughout Q2, KBN completed a USD 200m Tap of its September 2021 FRN bond and also issued a new USD 800m June 2020 FRN.

In addition to the activity in the USD FRN market, KBN has maintained its presence in the Kangaroo and Kauri markets.   Throughout Q2, KBN completed two taps of its outstanding AUD July 2025 bond (bringing the outstanding notional amount to AUD 1.075bn) and also launched a new 10.5-year December 2026 line.  In the Kauri market, KBN launched a new line, completing a NZD 100m June 2023 trade as well as tapping its outstanding May 21 line by a further NZD 100m.

Updated Green Bond framework and new green lending product launched



KBN has issued green funding since 2010. The first years were aimed at Japanese households in the Uridashi market. In 2013, with increasing worldwide demand for sustainable and responsible investments and projects with a climate benefit, KBN, as one of the first European SSA issuers, launched its public green bond programme.

As at end of 2015, the green lending portfolio stood close to USD 1.5bn (NOK 12.4bn) across around 200 municipal loans.  Till now KBN has offered 0.10% discount on its standard floating rate product aimed at climate friendly investments.  From June 2016 however, KBN will also begin offering a ‘green discount’ on its Nibor linked floating rate product to projects satisfying the green lending criteria.  This will be similarly offered at a 0.10% discount to the standard Nibor linked floating rate product.

KBN is the largest lender to the municipal sector and considers it an important part of our social responsibility to bring out the value of climate-smart investments.  It is hoped this new product adds flexibility and provides additional incentives for our customers to make environmentally friendly investment decisions.


In June 2016, KBN also updated its Green Bond framework based on the Green Bond Principles and also developed a supplemental criteria set for project selection, documentation and reporting.  The new framework has a CICERO second opinion and has been awarded with a Dark Green shading, indicating that KBN’s Green Bond framework stands for long-term solutions that contribute to a low-carbon and climate-resilient future. 

For more information on Green Bonds  

Funding forecast

With KBN’s forecast lending growth, it is expected that KBN will issue USD 4 billion in the second of 2016, thereby completing the USD 9-10 billion funding target for the year. 

With regard to KBN’s benchmark programme, KBN foresees another USD benchmark transaction during autumn (maturity focus 5-10 years) and a new Green Bond in the latter part of the year.  Markets permitting, this trade will have a maturity focus of 3-5 years.  

The KBN Funding Team