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5-year USD Benchmark

On Wednesday 11th January, KBN priced a new USD 1 billion 5-year benchmark. KBN was also active in the Kangaroo market, issuing a successful AUD 400 million 5-year transaction.

12.01.2023 / News

This marked the first USD benchmark of 2023 by a Nordic agency.

KBN reacted swiftly to the constructive market tone at the start of the year to announce their first 5-Year USD Benchmark since January 2022.

KBN is targeting an estimated total issuance program of USD 8-10 billion equivalent in 2023.

- Delighted to have kicked off the 2023 KBN funding program with a 5y double-header in USD and AUD. Both trades successfully launched with solid books and good secondary performance off the break, just the way we like it at KBN, says Thomas Møller, Head of Funding & IR in KBN.

Distribution

In terms of geographical distribution, the transaction was broadly diversified across EMEA (50%), Americas (35%), Asia (12%) and Other accounts (3%). Central Banks & Official Institutions were the largest investor component taking 52% of final allocations, supported by strong participation from Banks & Bank Treasuries (29%), Fund Managers / Insurance / Pension Funds (17%) and Other accounts (2%).

Download the full press release (PDF 0,2MB)

5-year Benchmark in the Kangaroo market

KBN was also active in the Kangaroo market, issuing a successful AUD 400 million 5-year Benchmark. This market continues to be a strategic market for KBN and is an important source of diversification for KBN's funding program. This new 5-year Benchmark follows on from KBN's successful AUD 300 million 3-year green bond issued in November 2022.

This latest deal saw broad investor support, with domestic Australian investors being allocated 47% of the bonds, Asian investors taking 48% and EMEA and Americas receiving 5%. In terms of investor type, Fund Managers, Pension Funds and Insurance was the largest group of investors, accounting for 53%, followed by Banks and Bank Treasuries taking 35%. Central Banks and Official Institutions received 12% of final allocations.