KommuneKredit

SECTOR Agency
RATINGS  AAA/Aaa
RATING OUTLOOK Both stable
FUNDING VOLUME 2021/2022  €6.4BN/€5BN
RISK WEIGHT, LCR LEVEL, SOLVENCY II  0%, level 1, 0% 
REPO ELIGIBILITY 

BoE, US Fed, RBA, Danmarks Nationalbank (Central Bank of Denmark)

About KommuneKredit

KommuneKredit is a member-based local government funding agency. It was founded in 1898 with the purpose of contributing to the financial latitude of Danish municipalities and regions by providing funding and financial advice at the lowest possible cost, thereby supporting the Danish welfare system as well as the high green ambitions of Danish local governments.

Members are municipalities and regions that have either raised themselves or guaranteed loans or leases with KommuneKredit. All municipalities and regions in Denmark have chosen to be members of KommuneKredit and as such they have accepted direct joint and several liability for all of KommuneKredit’s liabilities. The Danish regulator, Finanstilsynet, has confirmed KommuneKredit bonds’ level-one status for liquidity coverage ratio purposes.

KommuneKredit relies on strategic and tactical markets for its funding needs, with EUR, USD and DKK being the primary strategic markets and tactical currencies primarily being GBP, CAD, AUD, SEK and NOK. The long duration of KommuneKredits assets, and the amortisation of client loans, means KommuneKredit frequently operates in private placements in 15-year-plus tenors, where investor preferences for currency and duration can be accommodated.

Sustainable funding strategy

KommuneKredit published an updated green bond framework in February 2022. It is aligned with the ICMA Green Bond Principles and partially aligned with EU taxonomy as reviewed by Cicero. Green bonds have historically been issued in EUR and GBP benchmarks but also in a green private placement of A$40 million in EMTN format. Green bonds are considered for all funding purposes.

GSS BOND PROGRAMME NAME KommuneKredit Green Bonds
SUSTAINABILITY OBJECTIVE OF GSS BOND PROGRAMME
Support the Danish local governments’ investments that benefit the environment and support the transition to a low-carbon economy.
REFERENCE TAXONOMY FOR THE USE OF PROCEEDS Green Bond Principles EU Taxonomy delegated act on climate change mitigation. Project categories are clean transportation, green buildings, sustainable water and wastewater management, pollution prevention and control, energy and climate-change adaptation. 
FRAMEWORK WITH WHICH THE GSS BOND PROGRAMME IS ALIGNED Green Bond Principles (2021)
EXTERNAL REVIEW PROVIDER  CICERO Shades of Green (medium green; excellent governance, 2022)

PUBLIC ISSUER ESG RATINGS/SCORES

INSTITUTION RATING/SCORE
ISS-oekom C+
Sustainalytics 12.9 (low risk)
MSCI A

 

FOR FURTHER INFORMATION PLEASE CONTACT:

Daniel Aagaard Pedersen
Head of Funding and Investor Relations Manager
+45 3369 7670
This email address is being protected from spambots. You need JavaScript enabled to view it. 
www.kommunekredit.dk