The local government sector in Norway is closely monitored and supported by the central government and KBN has never suffered a loss or default on its loan portfolio since establishment 80 years ago. The Kingdom of Norway does not have any international funding programme, making KBN the closest proxy to Norwegian sovereign risk available in the international markets.

Funding strategy
KBN's aim is to follow a flexible and diversified funding strategy. To meet its funding objective, KBN has established a strategy based on four building blocks - institutional niche markets (15-25 per cent); retail issuance (20-30 per cent); benchmark issuance (20-30 per cent); and private placements (30-40 per cent). In 2007 more than 95 per cent of funding was raised outside Norway through 489 individual transactions in 12 currencies, amounting to US$8.5 billion equivalent.  

As part of its funding strategy, KBN continues its focus on what it defines as ‘niche institutional markets' of Australia, New Zealand, Canada, Switzerland and the UK. KBN launched its first Kangaroo issue in 2001 and Kauri issue in 2007 and is continuously committed to both markets. Subject to investor appetite, KBN is aiming for an annual Kangaroo and Kauri issuance of up to 5 per cent of its total funding volume.

AUD activity
KBN has issued Aussie dollars in the Kangaroo, Uridashi and Eurobond markets.

NZD activity