Municipality Finance Achieves USD 20 Million Note Issuance

Municipality Finance Takes a Significant Step with USD 20 Million Notes

Municipality Finance Plc has successfully issued USD 20 million notes, marking a noteworthy advancement in its Medium Term Note (MTN) programme. Scheduled for issuance on 28 February 2025, these notes possess a maturity date of 28 February 2035, setting the stage for a decade of responsible financing.

Details of the Issuance

The issuance carries a fixed interest rate of 5.305% per annum. This framework offers an appealing option for investors looking for stable returns while supporting the sustainability initiatives of MuniFin. Importantly, the company holds the option to redeem the notes earlier on 28 February 2027, providing flexibility in fiscal management.

Trading and Investor Interest

These notes are issued under a substantial EUR 50 billion programme for debt instruments, demonstrating MuniFin's financial strength and commitment to transparency. The offering circular, as well as the supplemental offering circular and final terms regarding the notes, will be accessible on the company’s website, facilitating informed investment decisions.

Following the issuance, MuniFin has sought admission for these notes on the Helsinki Stock Exchange, maintained by Nasdaq Helsinki. Public trading for these notes is anticipated to commence shortly after issuance.

Role of UBS in the Issuance

UBS Europe SE plays a critical role as the dealer for this note issue. Their expertise in international finance underpins the successful execution and distribution of these financial instruments, positioning MuniFin effectively within global capital markets.

About Municipality Finance Plc

MuniFin stands as a leader among Finland’s credit institutions, predominantly owned by Finnish municipalities, along with public sector pension fund Keva and the Finnish State. The group’s remarkable balance sheet totals over EUR 53 billion, showcasing its robust financial health and operational capability.

Commitment to Sustainable Development

The essence of MuniFin extends beyond financial transactions; it involves fostering a sustainable future for its customers. The company caters to municipalities, joint municipal authorities, and non-profit organizations reinforced by its pivotal commitment to environmentally and socially responsible investments. These projects typically encompass enhancements in public transportation, the development of sustainable buildings, and the procurement of essential healthcare facilities.

Global Operations and Local Focus

Even though MuniFin primarily serves domestic clients, its business landscape is inherently global. The company actively participates in international capital markets, emphasizing its standing as a prominent issuer of Finnish bonds. Notably, MuniFin also pioneered the issuance of green and social bonds in Finland, further cementing its commitment to sustainable financial practices. All funding provided by MuniFin is underwritten by the Municipal Guarantee Board, ensuring solid backing and security for their initiatives.

Frequently Asked Questions

What is the purpose of the USD 20 million notes issued by MuniFin?

The funds from the notes will support sustainable investments that benefit municipalities and related entities, focusing on environmentally friendly projects.

What is the interest rate on the newly issued notes?

The newly issued notes carry a fixed interest rate of 5.305% per annum.

What flexibility does MuniFin have with these notes?

MuniFin has the option to redeem the notes early on 28 February 2027, providing financial flexibility.

When will public trading for these notes commence?

Public trading for these notes is expected to begin on 28 February 2025, shortly after their issuance.

Who acts as the dealer for the issuance of these notes?

UBS Europe SE serves as the dealer for the issue of the notes, facilitating their distribution in the market.

About The Author

Even at just 28 years old, Lucas Young has made a name for himself as a writer and financial expert. Lucas is a gifted communicator of difficult financial ideas and has written a number of well-received books and articles that appeal to both new and experienced investors. The financial world has come to rely on his perceptive analysis and useful counsel. Many people have been enabled to make wise investment decisions by Lucas's commitment to financial literacy and his ability to demystify the complexities of the market. Lucas is still dedicated to advising and teaching people on their financial journeys as he shares his knowledge.

Contact Lucas Young privately here. Or send an email with ATTN: Lucas Young as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.