Municipality Finance Secures GBP 75 Million Through MTN Programme
Municipality Finance Secures GBP 75 Million Through MTN Programme
Municipality Finance Plc has successfully reinforced its financial standing by issuing a significant GBP 75 million tranche under its Medium Term Note (MTN) programme. This strategic move not only enhances its existing benchmark, which was initially issued on 7 March 2024, but is also part of a broader effort to amplify sustainable investment initiatives across various sectors.
Details of the New Issuance
With the recent issuance, the total nominal amount of the benchmark has now reached GBP 725 million, reflecting Municipality Finance's robust strategy and strong market presence. The maturity date for this benchmark is set for 2 October 2028, providing a stable timeline for investors. Importantly, the benchmark will bear a fixed interest rate of 4.375% per annum, an attractive offering for investors looking for dependable returns.
Purpose and Impact of the New Tranche
This new tranche is a part of MuniFin's expansive EUR 50 billion programme aimed at issuing various debt instruments, catering to the financial needs of municipalities and other partners in the public sector. The proceeds will be directed towards environmentally and socially responsible investments. Such investments encompass public transportation, healthcare facilities, education centers, and affordable housing projects, all of which are pivotal in fostering a sustainable future.
Trading and Market Reception
Municipality Finance has applied for the new tranche to be admitted to trading on the Helsinki Stock Exchange, a decision that demonstrates their commitment to transparency and accessibility for investors. Public trading is expected to commence soon, which should attract attention from various market participants looking to invest in socially responsible bonds.
Roles and Responsibilities
The issuance of this new tranche has been facilitated by Citigroup Global Markets Limited, which acts as the Dealer for this operation. This collaboration signifies strategic partnerships that enhance the issuance process, ensure compliance, and attract a diverse investor base.
About MuniFin
MuniFin (Municipality Finance Plc) stands as one of Finland's largest credit institutions, responsible for managing a balance sheet that exceeds EUR 55 billion. The company is primarily owned by Finnish municipalities, the public sector pension fund Keva, and the State of Finland. This collective ownership structure positions them uniquely within the financial sector, allowing them to offer competitive financial products tailored to the needs of various clients.
Commitment to Sustainable Financing
MuniFin is dedicated not only to its local clientele but also engages in a global business environment. They have positioned themselves as a leading issuer of bonds on international markets, being the first in Finland to issue green and social bonds. This commitment to sustainability aligns with their mission to build a better future through responsible lending practices.
Contact Information for Further Inquiries
For more details regarding the recent issuance or other inquiries, please contact: Joakim Holmström, Executive Vice President of Capital Markets and Sustainability at Municipality Finance. He can be reached directly at +358 50 444 3638.
Frequently Asked Questions
What is the significance of the GBP 75 million tranche?
This tranche adds to the existing benchmark to bridge funding for important sustainable projects.
When is public trading expected to start?
Public trading is anticipated to commence shortly after the application for admission is approved.
Who is responsible for handling the issuance?
Citigroup Global Markets Limited acts as the Dealer facilitating this transaction.
What types of projects will be funded?
The funds will primarily support public transportation, healthcare, education, and affordable housing efforts.
How does MuniFin support sustainable initiatives?
MuniFin focuses on providing financing solutions that encourage environmental and social responsibility in its lending practices.
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