Bond Komunalbanken 0% ( XS0202604160 ) in USD

Issuer	Komunalbanken
Market price	100 % ⇌
Country	Norway
ISIN code	XS0202604160 ( in USD )
Interest rate	0%
Maturity	20/10/2034
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Minimal amount	100 000 USD
Total amount	132 000 000 USD
Detailed description	Kommunalbanken is a Norwegian state-owned bank primarily providing financing to municipalities and county councils. A detailed examination of the bond market reveals a specific debt instrument issued by Kommunalbanken, identified by ISIN XS0202604160, offering insights into the financing strategies of one of Norway's key financial institutions. Kommunalbanken, or KBN, is a state-owned financial enterprise serving as a primary source of funding for the Norwegian municipal sector, encompassing municipalities and county authorities; its unique position as a public agency, fully guaranteed by the Kingdom of Norway, underpins its exceptionally strong credit standing, typically rated AAA by major credit rating agencies, making its debt instruments highly regarded by investors seeking stability and security. This particular bond, issued out of Norway and denominated in US Dollars, currently trades at 100% of its face value in the market. A notable characteristic of this bond is its 0% interest rate, categorizing it as a zero-coupon instrument, meaning investors do not receive periodic interest payments but rather are repaid its full face value upon maturity; given its current market price at par, this implies a 0% yield to maturity if held until its redemption. The bond matures on October 20, 2034, providing a long-term investment horizon. The total size of this specific issue amounts to 132,000,000 USD, with a minimum purchase size set at 100,000 USD, indicating its target towards institutional investors or high-net-worth individuals. While the bond documentation specifies a payment frequency of 2, consistent with semi-annual typical coupon payments, the zero-coupon nature of this instrument confirms that no interest disbursements will occur throughout its life, with the principal repayment occurring solely at maturity.