Municipality Finance Raises EUR 40 Million with Zero Coupon Notes
Municipality Finance Issues EUR 40 Million Zero Coupon Notes
Municipality Finance Plc has successfully issued EUR 40 million in zero coupon notes as part of its Medium Term Note (MTN) programme. This financial instrument, set to mature on 2 July 2065, reflects the company’s commitment to meet the funding needs of municipalities and other public entities.
Details of the Issue
The notes will officially be issued on 2 July 2025. Interestingly, MuniFin has the right, although not the obligation, to redeem these notes early on 2 July 2037, providing a flexible investment option for stakeholders.
The Context of the Bond Market
Municipality Finance operates under a robust EUR 50 billion programme dedicated to issuing debt instruments. This offers investors a diversified range of opportunities while benefiting municipalities and public projects across Finland. With the public trading of these notes commencing on 2 July 2025 on the Helsinki Stock Exchange, there is an optimistic outlook for sustained market interest.
Engaging the Investment Community
The primary dealer for this issuance is Goldman Sachs Bank Europe SE, a notable participant in global finance. This partnership not only facilitates a smooth issuance process but also strengthens MuniFin’s presence within the capital markets ecosystem.
Promoting Sustainable Development
Municipality Finance Plc stands as a pillar of support for Finland’s municipal sectors, which include local authorities and public service agencies. The company is dedicated to financing environmentally and socially responsible initiatives. This funding supports essential services like public transportation, education, healthcare, and housing for vulnerable populations.
Aligning with Global Standards
While MuniFin’s clientele primarily consists of domestic entities, it operates in a global market, actively engaging in international bond issuance. MuniFin made history as the first Finnish issuer of green and social bonds, demonstrating its commitment to sustainable financial practices. Such initiatives are vital as they ensure that municipal projects align with contemporary economic and environmental standards.
Long-term Vision and Strategy
The balance sheet of MuniFin exceeds EUR 53 billion, underscoring its significance in the Finnish financial landscape. The institution’s ownership consists of Finnish municipalities, the public sector pension fund Keva, and the State of Finland, indicating a strong local backing. This extensive network allows MuniFin to develop and promote projects that positively impact communities while ensuring sound financial management.
Contact Information
For more details regarding this announcement, contact Joakim Holmström, Executive Vice President of Capital Markets and Sustainability, at +358 50 444 3638. His expertise is pivotal in guiding MuniFin through the complexities of capital markets.
Frequently Asked Questions
What are the key details of the zero coupon notes issued by MuniFin?
The zero coupon notes amount to EUR 40 million, maturing on 2 July 2065, with potential early redemption on 2 July 2037.
Who is managing the issuance of these notes?
The notes are being managed by Goldman Sachs Bank Europe SE, facilitating their distribution in the market.
What is the significance of MuniFin’s bond issuance?
This issuance is part of MuniFin’s EUR 50 billion programme to support funding needs for municipalities and enhance public service projects.
How does MuniFin contribute to sustainable development?
MuniFin finances initiatives focused on social and environmental sustainability, including public transportation and healthcare facilities.
What is MuniFin’s market position?
With a balance sheet over EUR 53 billion, MuniFin is a leading player in Finland’s credit market, backed by local municipalities and public institutions.
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