Funding and financial risk management

On this page you will find information about funding and financial risk management in the City of Malmo.

The City Office is responsible for raising funds and act as an internal bank for the municipal departments and muncipal held companies that are members of the internal bank. All external funding and investments are managed by the internal bank with the City Office.

Rules and regulations

The possibility for the internal bank to take up loans is governed by a financial policy of the city. This policy is decided upon by the City Board acting on behalf of the City Council. The duties of the internal bank should be carried out in a safe and non-speculative way and in line with existing laws, municipal right and the legal principles of the EU. The operations shall be characterized by high competence and good risk management. By acting proactively towards the capital market, the internal bank creates rational ways to manage risks and streamlining funding.

Ambitions

The overarching goals of the financial management within the city is to contribute to sound economic management (god ekonomisk hushållning) through:

  • Making sure the ability to pay is always there and providing access to capital.
  • Within the frameworks of the above: strive to achieve best possible financial result.
  • Make efficient use of economies of scales within the municipal group for funding, payments, cash management and other financial services.

Credit rating

The City of Malmo has contracted Standard & Poor's since 2011 in order to get a credit rating. Since 2011 the City of Malmö has had the highest long term credit rating of AAA/Stable nad A-1+ which is the highest credit rating loans with shorter maturities.

The credit rating reflects the rapidly growing local economy and from the fact that the city is positioned in the Öresund region, strong management with a clear history of budget disciplin, small debt which is supported a strong liquidity position.

Standard & Poor's rating (November 2019) (pdf, 205.4 kB)

Capital markets program

The City of Malmö is funding is managed through it’s capital markets programs listed below and also through loans and bank facilities from banks with good credit rating.

Euro Medium Term Note (EMTN)

Arrangör: Skandinaviska Enskilda Banken AB
Dealers: Barclays Bank PLC, Danske Bank AS, Deutsche Bank AG London Branch, DNB Bank ASA Sweden Branch, Goldman Sachs International, Nordea Bank Denmark A/S, Skandinaviska Enskilda Banken AB, Svenska Handelsbanken AB , Swedbank AB
Program Size: SEK 15 billions
Term: More than 1 year
IPA: Deutsche Bank AG

Offering Memorandum
City of Malmö - Dealer Agreement
City of Malmö - Notice of Increase

Euro Commercial Paper (ECP)

Arrangör: Skandinaviska Enskilda Banken AB
Dealers: Barclays Bank PLC, Citibank Europe PLC UK Branch, ING Bank N.V., Skandinaviska Enskilda Banken AB
Program size: SEK 5 billions
Term: less than 1 year
IPA: Deutsche Bank AG

ECP Information Memorandum

Commercial Paper (CP)

Arrangör: Swedbank AB
Dealers: Danske Bank A/S, DNB Markets, Nordea bank AB, Skandinaviska Enskilda Banken AB, Svenska Handelsbanken AB, Swedbank AB
Rambelopp: SEK 5 billions
Term: up to 1 year
IPA: Swedbank

Emmissionsavtal (pdf, 6.3 MB)

Green bond issuance

In November 2017 city of Malmo completed it’s green bond framework and achived it’s Second Opinion statement from Sustainalytics on the framework. In this phace we also issued our inaugural green bond which is now listed on the London Stock Exchange list for Sustainable bonds. In 2018 we issued a new green bond and expect to so on annual basis. We’ll also publish a yearly report on the environmental aspects of the investments according to the green bond framework.

Green bond framework (pdf, 6.6 MB)
Second Opinion from Sustainalytics (pdf, 762.1 kB)

Green report 2018

Senast ändrad: 2019-12-09 08:49