KBN

Kommunalbanken AS (KBN) is a prominent financial institution in Norway, with a strong focus on providing financial services to the local government sector. Established in 1927, KBN has total assets of about NOK 500 billion. The company is 100% owned by the Norwegian state and managed through the Ministry of Local Government and Regional Development. KBN's primary goal is to facilitate the development of sustainable communities by offering loans to the local government sector.

KBN distinguishes itself by its approach to financing. The organization raises capital for its lending activities by borrowing directly from the capital markets. Notably, KBN is recognized as one of the largest Norwegian borrowers in the international capital markets, seeking to secure approximately NOK 100 billion in loans annually. Furthermore, KBN emphasizes sustainability by financing its green loans through the issuance of green bonds.

One of KBN's most notable attributes is its conservative risk profile, leading to its prestigious AAA credit rating from both Standard and Poor’s and Moody’s. This distinction is a result of the company's public mandate, strong capital base, robust operations, and low risk appetite as a state-owned entity. The company's position as one of the few AAA-rated financial institutions in the world further underscores its credibility and stability within the industry.