KommuneKredit

SECTOR Agency
RATINGS  AAA/Aaa
RATING OUTLOOK Both stable
FUNDING VOLUME 2020/2021  €5.8BN/€5.8BN
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’s mission is to contribute to the financial latitude of Danish municipalities and regions by providing funding and financial advice at the lowest possible cost. Its vision is always to be the best funding choice for customers, and to be modern, efficient and engaged with a focus on high quality, steadiness and stability.

Members are municipalities and regions that have raised loans or entered into leases with KommuneKredit or have guaranteed or are liable for loans or leases with KommuneKredit. All municipalities and regions in Denmark are members of KommuneKredit. Members have joint and several liability for all KommuneKredit’s liabilities.

KommuneKredit’s high credit rating is attributable to its strong capitalisation, highly creditworthy borrowers, strong market position and the joint-and-several liability of Danish local governments. KommuneKredit does not need to make a profit above what is necessary to maintain an adequate capital base. The agency’s level of expenses is low, which means funding raised can be on-lent at a modest margin.

KommuneKredit has strong capitalisation, with an equity-to-asset ratio of 3.6% as of year-end 2020. The Danish regulator, Finanstilsynet, has confirmed KommuneKredit bonds’ level-one status for liquidity-coverage-ratio purposes.

Sustainable funding strategy

KommuneKredit is the leading provider of green financing for local governments in Denmark. It is committed to supporting local governments’ investment needs for the ambitious transition of Danish society to a better and more sustainable future. KommuneKredit is a well-established issuer of green bonds in capital markets and its ambition is to offer regular issuance. Since its inaugural transaction in 2017, KommuneKredit has issued four green bonds for a total of €2.25 billion under the bank’s Green Bond Framework, as well as a green private placement of A$40 million.

SUSTAINABILITY OBJECTIVE OF GSS BOND PROGRAMME
Support the Danish local governments’ investments in the transition to a low-carbon economy.

GSS BOND PROGRAMME NAME KommuneKredit Green Bonds
REFERENCE TAXONOMY FOR THE USE OF PROCEEDS Green Bond Principles and own project categories (district heating, water, energy efficiency and clean public transportation)
FRAMEWORK WITH WHICH THE GSS BOND PROGRAMME IS ALIGNED Green Bond Principles 
EXTERNAL REVIEW PROVIDER  CICERO

PUBLIC ISSUER ESG RATINGS/SCORES

INSTITUTION RATING/SCORE
ISS-oekom C

 

FOR FURTHER INFORMATION PLEASE CONTACT:

Eske Hansen
Chief Funding and Investor Relations Manager
+45 3369 7607
This email address is being protected from spambots. You need JavaScript enabled to view it. 
www.kommunekredit.dk