The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Nordics show local authorities how to borrow

Agencies such as Kommuninvest, Munifin and KommuneKredit might not be the best known in the capital markets. But a growing global community of investors can’t get enough of their paper. Is it an example that others want to follow?

Tomas Werngren-column
Tomas Werngren,
Kommuninvest CEO

Agencies representing local governments are stepping up to the plate in a growing number of countries. This enables councils to tap capital markets as funding needs grow and governments move out of the market. Tax receipts, joint-and-several guarantees from their members and a culture of conservatism provide a security that underpins a legal structure. This has proved highly attractive to investors in agency paper.

A number of names (predominantly until now) from Scandinavia are already well known and trusted by the markets as triple A-rated borrowers. Hans Beyer, head of global capital markets at SEB, says: “The agencies represent a new and quickly growing asset class, underpinned by guarantees from their members. It is highly secure.”

Ulrik Ross, HSBC’s head of global public sector debt and sustainable financing, agrees: “The Nordic model of the agency for local government financing is the best in the world having proved itself throughout the crisis, and it continues to perform.”

The agencies’ burgeoning role in the capital markets was underlined by Moody’s Investor Services in its August peer-comparison report.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree