Municipality Finance Launches GBP 250 Million Benchmark Offering

Municipality Finance Announces GBP 250 Million Benchmark Issuance

Municipality Finance Plc has successfully issued a benchmark worth GBP 250 million as part of its Medium Term Note (MTN) program. This initiative signifies a strategic move to bolster its financing pathways, particularly aimed at sustaining municipal services and responsible investment funding.

Details of the Benchmark Issuance

The recent issuance occurred on a set date, with a maturity date specified for early in the year 2028. This financial instrument is designed to attract investor interest, bearing an appealing fixed interest rate of 4.625% annually. Such rates are critical for maintaining a competitive edge in the bond market.

Commitment to Sustainable Investments

This benchmark issuance is backed by MuniFin’s extensive EUR 50 billion program for issuing debt instruments. It allows for substantial financial resources to be directed toward projects that significantly benefit communities. MuniFin's funding strategy emphasizes environmental responsibility while providing essential services like housing, healthcare, and public infrastructure.

Application for Trading

MuniFin has also initiated steps to have this benchmark admitted for trading on the Helsinki Stock Exchange, expecting trading to commence shortly. This is a significant move since public trading of bonds can enhance their liquidity and attract a wider base of investors.

Joint Leadership in the Issuance Process

To facilitate this benchmark issuance, a consortium of major financial institutions including Morgan Stanley & Co. International plc, Citigroup Global Markets Limited, and Bank of Montreal Europe plc has taken the role of Joint Lead Managers. Their expertise ensures effective distribution and marketing of the benchmark.

About Municipality Finance Plc

MuniFin, or Municipality Finance Plc, stands as one of Finland's leading credit institutions. The company enjoys the backing of Finnish municipalities and the Republic of Finland, ensuring a robust governance structure and financial security. Its impressive balance sheet exceeds EUR 50 billion, reflecting its essential role in public finance.

Focus on Social Responsibility

The overarching mission of MuniFin goes beyond mere financial transactions. The organization actively supports projects aimed at fostering sustainable development and socioeconomic welfare. Its clients comprise a diverse portfolio including municipalities, health service providers, and non-profit organizations designated by Finland's Housing Finance and Development Centre.

Sustainable Funding Strategies

MuniFin operates not just locally but within a global market dynamic, marking its presence as a notable Finnish bond issuer. Its commitment to socially responsible funding is underscored by its status as the first issuer of green and social bonds in Finland. Each funding initiative is carefully scrutinized to ensure it adheres to standards that promote ecological and social health.

Contact Information

For more details regarding the benchmark issuance or MuniFin’s services, please reach out to:

Joakim Holmström
Executive Vice President, Capital Markets and Sustainability
Tel. +358 50 444 3638

Frequently Asked Questions

What is the amount of the benchmark issued by Municipality Finance?

The benchmark issued amounts to GBP 250 million.

What is the maturity date of the benchmark?

The benchmark has a maturity date set for 1 February 2028.

What interest rate does the benchmark offer?

It offers a fixed interest rate of 4.625% per annum.

Who are the Joint Lead Managers for this benchmark issuance?

The Joint Lead Managers include Morgan Stanley, Citigroup, and Bank of Montreal Europe.

What is MuniFin's mission regarding funding?

MuniFin focuses on financing environmentally and socially responsible projects that benefit municipalities and their communities.

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