Norwegian city of Stavanger is the first municipality worldwide to conduct its bond auctions using the Bloomberg Professional service Bond Auction System (BAS), a fully managed auction platform.
Two auction rounds have successfully been completed for a NOK 250 million bond issuance and a NOK 300 million certificates of deposit issuance.
“Stavanger, the centre of the oil industry in Norway, has chosen the Bloomberg Bond Auction System as it allows them to manage their bond auctions more efficiently,” says Nicholas Bean, Bloomberg’s Head of Fixed Income Trading Products. “The solution provides a cost-effective and secure way to manage operations for primary markets for issuers who would otherwise have to conduct a manual process, or have to build and implement their own solution.”
Lauritz Haarr, Finance Manager at Stavanger municipality, says, “we see multiple advantages in Bloomberg’s solution. Stavanger municipality uses the Bloomberg auction system both for refinancing older issues and to raise new capital in an efficient and less time consuming way. Also, the whole auction process can be monitored and tracked, and is stored for later reviews and internal controls, which is an important point for us. Having the data stored on a market platform with real-time prices also facilitates the portfolio management. Stavanger has a significant portfolio, like the other larger municipalities in Norway, and by streamlining the whole auction process we are also communicating better with the market place.”
BAS is part of Bloomberg’s FIT (Fixed Income Trading) offering and is accessible on the Bloomberg Professional service. It allows government agencies and financial institutions to perform their auction tenders with dealers who submit their bids via Bloomberg.
BAS includes a fully managed auction platform with a high-level flexibility supporting both competitive and non-competitive bidding, configurable market templates, full auction life cycle and an extensive straight-through-processing (STP) system. Bloomberg’s Auction System can be combined with the E-Bond Trading Platform to provide a full solution extending into the secondary market.