Municipality Finance Raises EUR 40 Million with New Zero Coupon Notes
Municipality Finance Successfully Issues EUR 40 Million
Municipality Finance Plc has take a significant step by issuing EUR 40 million in zero coupon notes under its Medium Term Note (MTN) programme. This exciting announcement highlights the company's proactive approach in managing its financial portfolio.
Details of the Bond Issuance
The zero coupon notes were officially issued on July 2, 2025, with an extending maturity date set for July 2, 2065. An interesting aspect of this arrangement is that Municipality Finance holds the option to redeem these notes early on July 2, 2037. This flexibility adds a layer of financial strategy for future capital needs.
Background on the MTN Programme
This issuance is part of Municipality Finance’s broader EUR 50 billion programme dedicated to the issuance of various debt instruments. The offering circular and final terms detailing the specifics of these notes are accessible in English on the company’s website.
Trading and Market Impact
In addition to the issuance of the notes, Municipality Finance has sought approval for them to be listed on the Helsinki Stock Exchange, which is maintained by Nasdaq Helsinki. Public trading of the notes is anticipated to begin on July 2, 2025, marking an important opportunity for investors.
The Role of Goldman Sachs in the Issuance
Goldman Sachs Bank Europe SE has been appointed as the dealer for this notable bond issuance, facilitating the process and ensuring a smooth transition into the market. Their involvement demonstrates the confidence in the financial strategy employed by Municipality Finance.
Company Overview and Financial Health
Municipality Finance Plc, as one of the most substantial credit institutions in Finland, plays a pivotal role in stemming public funding. It serves a wide array of entities, including Finnish municipalities and public sector bodies, and strives to foster a sustainable future.
Commitment to Sustainability
The organization actively channels funds into sustainable investments. The focus lies on supporting projects related to public transport, healthcare, and environmental considerations, thus ensuring the social responsibility aspect of their initiatives aligns with various stakeholders.
Global Operations and Market Position
Though Municipality Finance mainly caters to domestic clients, it operates within a global financial landscape. They proudly hold the title of being the first Finnish issuer of green and social bonds, reflecting their commitment to responsible financing.
Contact Information and Further Inquiries
For any inquiries, Joakim Holmström serves as the Executive Vice President for Capital Markets and Sustainability. He can be reached at +358 50 444 3638 for detailed information regarding this issuance or Municipality Finance’s operations.
Frequently Asked Questions
What are zero coupon notes?
Zero coupon notes are debt instruments that do not pay interest during their life. Instead, they are issued at a discount and redeemed at face value at maturity.
What is the maturity date for these notes?
The notes have a maturity date of July 2, 2065, with an option for early redemption on July 2, 2037.
Who is the dealer for the note issuance?
Goldman Sachs Bank Europe SE acts as the dealer for the issuance of these notes.
Where can I find more information on Municipality Finance?
Further details can be found on Municipality Finance's official website, which provides additional insights into their financial products and initiatives.
What is the role of Municipality Finance in Finland?
Municipality Finance plays a crucial role in funding public investments in Finland, supporting municipalities, healthcare, and sustainable projects across the nation.
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