New 5-Year USD Benchmark
On Wednesday August 23rd, KBN successfully priced a USD 1.25 billion 5-Year Benchmark bond.
The Benchmark bond represents KBN’s second new 5-year USD Benchmark transaction in 2023. The market tone was positive, and investors had a strong appetite for papers after a period of limited supply.
– This was our second 5y USD benchmark of the year and a post-summer market opener for the SSA agency space. With a positive market undertone and little or no supply since early Summer, we saw this as good opportunity to engage. Turned out to be a textbook trade, with a solid orderbook and record number of accounts, accommodating for a 2bp tightening from IPT and solid performance at the break. KBN funding program is now approximately 70% done for the year, says Thomas Møller, Head of Funding & IR in KBN.
The transaction attracted strong demand with final books amounting over USD 2.6 billion. The book was well diversified with 87 orders.