Municipality Finance Expands Funding with SEK 1 Billion Notes
Municipality Finance Expands Its MTN Programme with New Notes
Municipality Finance Plc has recently made a significant move by issuing a new tranche of SEK 1 billion under its Medium Term Note (MTN) programme, enhancing the existing series of notes which was first introduced earlier this year. This development is a testament to the company's robust presence in the financial markets and its ongoing commitment to support sustainable investment initiatives.
A Closer Look at the New Tranche
The newly issued SEK 1 billion adds to the total nominal amount of the existing notes, bringing it to SEK 4.5 billion. With a maturity date set for February 21, 2028, these notes will operate at a floating interest rate, specifically 3-month Stibor plus an additional 150 basis points per annum. This flexible interest structure is designed to appeal to a wide range of investors who are looking for quality fixed income in their portfolios.
Trading Details and Market Presence
Municipality Finance has applied for these new notes to be traded on the Helsinki Stock Exchange, with public trading expected to commence shortly after issuance. This move demonstrates the company's proactive engagement with investors and their earnest desire to maintain liquidity and transparency in the capital markets.
The established notes in this series have already found a place on the Helsinki Stock Exchange, reinforcing trust and stability in Municipality Finance's offerings. The involvement of Skandinaviska Enskilda Banken AB (publ) as the dealer for this issuance further legitimizes confidence in this financial undertaking.
Who is MuniFin?
MuniFin, or Municipality Finance Plc, stands as one of Finland’s largest credit institutions. The organization's ownership is composed of Finnish municipalities, the public sector pension fund known as Keva, and the State of Finland. Presently, MuniFin boasts a balance sheet exceeding EUR 53 billion, reflecting its considerable standing in the financial arena.
Serving a Diverse Customer Base
The organization's customer spectrum includes municipalities, joint municipal authorities, various wellbeing services counties, and additional corporate entities under their supervision. Their lending strategies are focused on funding a mix of environmentally and socially responsible projects, such as public transportation systems, sustainable building initiatives, healthcare facilities, educational institutions, and supported living arrangements for individuals with special needs.
Global Impact and Initiatives
Though MuniFin primarily serves domestic customers, it operates within a widely international business context. The company has emerged as a pivotal Finnish bond issuer in global capital markets and proudly holds the title of the first Finnish issuer of green and social bonds. This commitment to sustainable funding is backed exclusively by the Municipal Guarantee Board, reinforcing their accountability and reliability.
With its eye on fostering environmentally friendly investments, MuniFin is positioned not just as a local player but as a beacon of responsible finance on a global scale.
Further Information
The company remains dedicated to transparent operations and readily provides comprehensive resources and data for existing and potential investors alike. Comprehensive details regarding the notes, including related documents and offering circulars, are conveniently accessible on their official corporate website.
For direct inquiries, Joakim Holmström, the Executive Vice President of Capital Markets and Sustainability, is available to address any questions or provide further assistance. Joakim can be reached at +358 50 444 3638.
Frequently Asked Questions
What is the purpose of the SEK 1 billion tap issuance?
The SEK 1 billion tap issuance aims to enhance Municipality Finance's existing notes and increase its aggregate worth in the capital markets.
When will the new notes be available for public trading?
Trading for the new notes is expected to commence shortly after their issuance, around late May.
What types of projects does MuniFin fund?
MuniFin funds a variety of projects focusing on public services, environmental sustainability, and social responsibility, including healthcare and education.
Who is eligible to invest in MuniFin's notes?
Investors eligible to invest in MuniFin’s notes typically include individuals and institutional entities looking for secure, socially responsible investment opportunities.
How does MuniFin support sustainable initiatives?
MuniFin supports sustainability through financing projects that benefit public services and promote eco-friendly practices, contributing to a more resilient community.
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