KBN has developed a truly global funding program with active issuance in core USD and EUR benchmark markets, as well as regular issuance in other international public markets. KBN also offers investors flexibility through the issuance of private placements and selected retail issuance.
Diversification is of key importance and KBN continues to strive to develop its international investor base. Issuance is conducted via a range of documentation platforms, enabling access to both domestic and international investors. A key factor in KBN's success is our flexibility to meet demand for various currencies and tenors and our short response time on new ideas.
A considerable portion of KBN’s annual borrowing program is raised by issuing liquid benchmark securities. KBN is committed to further developing its benchmark strategy by:
Strengthening our presence as a recurrent, high quality benchmark borrower
Carefully considering timing period and demand to meet key investor appetite and increasingly widen distribution
Securing performance through fairly-priced, fully book-built transactions and a well managed execution process.
Closely co-operating with lead managers to ensure continued secondary support and performance
Current funding requirement allows for 3-4 annual USD or EUR benchmark transactions
Benchmark issuance target: 40-60% of overall funding
KBN is focused on investor diversification and will continue to nurture its presence in a variety of public markets with strategic issues in local currencies. Our key markets today include:
Institutional issuance target: 25-40% of overall funding
KBN aims to maintain a strong relationship with investors and is accommodative of investor needs for tailor-made private placements. KBN is an active and flexible issuer of plain vanilla and callable notes.
KBN currently allows:
Size depending on capacity. Previously issued from USD 10 mn to USD 1 bn
Maturities ranging from 3-months to 30-years, with a maximum of 10-years for bullets
A broad range of currencies
Private placement issuance target: 5-15% of overall funding
KBN continually monitors new local markets for opportunities to enrich its funding strategy. KBN offers a range of currencies and tenors in both plain vanilla and callable format.
KBN is targeting an estimated total issuance program of USD 8-10 billion equivalent in 2023.
In 2022, KBN raised USD 9.2 billion equivalent via its diversified funding program. This was achieved via 45 individual transactions across 10 different currencies.
KBN's largest benchmark market is the active issuance it completes in the USD market. KBN aims to issue 2-4 USD benchmarks annually. In order to broaden the KBN investor base and expand market presence, KBN began issuance of EUR denominated Benchmarks in 2014. KBN aims to be an active EUR benchmark issuer. Benchmark issuance targets investors from around the world in maturities ranging from 2 to 10 years.
Recent USD Benchmark Distribution (in percentage):
KBN currently has 13 USD benchmark transactions outstanding. The total notional amount outstanding is USD 17.25 billion.
KBN currently has 4 EUR benchmark transactions outstanding. The total notional amount outstanding is EUR 4.50 billion.