Municipality Finance Expands MTN Programme with New Issuance
Municipality Finance Expands MTN Programme with New Issuance
Municipality Finance Plc has taken a significant step in the financial market by issuing a new tranche valued at USD 25 million under its Medium Term Note (MTN) programme. This move reflects the company's ongoing strategy to bolster its existing benchmark, enhancing its capacity to engage in vital financing activities.
Details of the New Tranche
Effective from 17 October 2025, this issuance adds to a benchmark originally established on 22 January 2025, raising the total nominal amount to USD 575 million. The new tranche's maturity date is set for 2 February 2029, and it will bear interest at a floating rate determined by the Compounded SOFR plus 100 basis points per annum. This structure is aimed at providing flexibility and responsiveness to market conditions, thereby optimizing the borrowing costs for the company.
Navigating the MTN Landscape
This issuance is made under MuniFin’s expansive EUR 50 billion programme for the issuance of debt instruments. The operational environment for such instruments requires companies to maintain transparency and accessibility, which is why the offering circular, supplementary offering circular, and final terms are available on the company’s website. MuniFin is committed to ensuring stakeholders have the necessary information to make informed decisions.
Market Participation and Trading
MuniFin has proactively sought to have this new benchmark traded on the Helsinki Stock Exchange, operated by Nasdaq Helsinki. Public trading is anticipated to commence on 17 October 2025, allowing investors to engage with their products and broaden their market participation. The inclusion of the new tranche is a strategic effort to meet diverse investor needs and foster market liquidity.
The Role of TD Global Finance
In this important transaction, TD Global Finance unlimited company has been designated as the Dealer for the issuance of the new tranche. This collaboration showcases the integral relationships Forum maintains with market participants, ensuring the successful execution and distribution of its financial instruments.
About Municipality Finance Plc
MuniFin, or Municipality Finance Plc, is one of Finland’s prominent credit institutions, serving a critical role in financing municipalities and public sector entities. The ownership of the company encompasses Finnish municipalities, the public sector pension fund Keva, as well as the State of Finland. With a robust balance sheet exceeding EUR 55 billion, MuniFin is positioned as a central player in funding community-oriented projects.
Commitment to Sustainable Development
MuniFin's clientele includes municipalities, joint municipal authorities, and wellbeing service counties. Their lending practices focus particularly on environmentally and socially responsible projects. Investments are directed towards essential services such as public transportation, sustainable housing, healthcare centers, and educational facilities. This clear commitment to responsible financing showcases how MuniFin aligns its objectives with societal needs.
Global Engagement in Local Financing
While MuniFin’s primary market remains domestic, it operates within a global business framework. The institution is an active issuer in international bond markets, striving for openness and competitiveness. It has distinguished itself as the first Finnish issuer of green and social bonds, reflecting a forward-thinking approach in funding methods. The funding sourced through these bonds is secured exclusively by the Municipal Guarantee Board, assuring investors of the reliability and integrity of their investments.
Contact Information
For further inquiries, interested parties can reach out to Joakim Holmström, the Executive Vice President of Capital Markets and Sustainability at MuniFin, by phone at +358 50 444 3638. His expert insights can provide additional clarity regarding MuniFin's strategic initiatives and offerings.
Frequently Asked Questions
What is the significance of the USD 25 million issuance?
The USD 25 million issuance enhances MuniFin's capacity for financing public sector projects, reflecting its commitment to community development.
When is the maturity date of the new tranche?
The maturity date for the new tranche is set for 2 February 2029, allowing for structured financing over several years.
What role does TD Global Finance play?
TD Global Finance unlimited company has been appointed as the Dealer for this issuance, managing the execution and distribution of the new tranche.
How does MuniFin contribute to social responsibility?
MuniFin focuses on lending for environmentally and socially responsible projects, ensuring funding aligns with community needs, such as hospitals and schools.
What is MuniFin’s position in international markets?
MuniFin is an active player in international capital markets and is recognized for being the first Finnish issuer of green and social bonds.
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