Frequently asked questions for investors
Investor
KBN is 100% owned by the Kingdom of Norway and works as a state instrumentality to play a critical public policy function by providing low cost funding to the Norwegian local government sector. KBN’s mandate also involves promoting competition in the market for municipal loans, which thereby facilitates the efficient provision of public services across the country.
KBN benefits from a maintenance statement from the central government and in this statement, it affirms that "The Kingdom of Norway considers it to be its duty to ensure that Kommunalbanken is always in a position to meet its financial obligations". The maintenance statement underlines the central government's commitment to KBN as a government funding agency and the importance that it places in KBN as Norway's main provider of low cost finance to the local government sector.
KBN is a government agency, reporting to the Ministry of Local Government and Modernization. The government appoints KBN’s Board of Directors and Supervisory Board. KBN is a wholesale lender to local governments, does not hold a banking license and is not a deposit taking institution. In 2014, KBN was deemed a systemically important financial institution in Norway and came under new capital adequacy rules. The Norwegian Financial Supervisory Authority (FSA) is KBN’s regulator for activities and operations.
KBN has been fortunate to attract a broad range of investors to its benchmark securities. KBN’s benchmarks have been placed with central banks, sovereign wealth funds, bank treasuries, fund managers, corporate treasuries, insurance companies and pension funds across the globe.
Over the past several years, KBN has built up a regular presence in several institutional markets, such as the AUD, NZD, GBP, NOK and SEK markets. By issuing in these domestic markets, KBN has expanded its investor base, reduced a reliance on the USD and EURO markets and developed new investor relationships.
KBN was one of the pioneers of public Green bond issuance in Europe and the first issuer in the Nordic region to launch a public Green bond (USD 500 mn 3-year in 2013). Since then, subsequent issues have been launched in AUD, NOK, SEK and USD. In June 2016, KBN updated its Green Bond programme and was rewarded a Dark Green shading by the Centre for International Climate Research (CICERO). In 2017, KBN was elected executive committee member of the Green Bond Principles (GBP), the leading international green bonds standard. By 2019, outstanding KBN Green bond issuance amounts to USD 1.75 bn equivalent.