Municipality Finance's Significant Benchmark Issue
Municipality Finance Plc has taken a bold step by issuing a USD 300 million benchmark. This move is part of their Medium Term Note (MTN) programme, which aims at broadening their funding sources while supporting Finland's essential public projects.
Details of the Benchmark Issuance
Set to take place on January 22, 2025, this new benchmark will mature on February 2, 2029. The interest on this benchmark will be calculated based on a floating rate, specifically the Compounded SOFR, with an additional 100 basis points per annum. Such interest structures are designed to reflect market conditions and offer attractive investment opportunities.
Placement Under MuniFin's Debt Program
This issuance falls under Municipality Finance's extensive EUR 50 billion debt instruments programme. This vast programme allows the company to meet various funding needs, enabling them to continue financing significant public infrastructure projects across the country.
Public Trading Anticipated
Municipality Finance has also sought to have this benchmark admitted for trading on the Helsinki Stock Exchange, which is operated by Nasdaq Helsinki. Public trading is expected to commence shortly after the issuance date, making it accessible to a wide array of investors.
Collaboration with Financial Institutions
For this benchmark issue, Municipality Finance has partnered with prominent financial entities, namely Nomura International PLC and Bank of Montreal Europe Plc, who are acting as Joint Lead Managers. Their expertise is crucial in ensuring a successful placement.
About Municipality Finance Plc
MuniFin, or Municipality Finance Plc, stands out as one of Finland's foremost credit institutions. With ownership structure spanning Finnish municipalities, the public sector pension fund Keva, and the Republic of Finland, its financial health is robust, boasting a balance sheet exceeding EUR 50 billion.
Who are MuniFin's Clients?
MuniFin caters to a diverse clientele comprising municipalities, joint municipal authorities, wellbeing service counties, and affordable housing projects. By focusing on environmentally and socially responsible investments, MuniFin plays a pivotal role in facilitating critical public services such as healthcare, education, and transportation systems.
Global Presence
While MuniFin focuses mainly on domestic finance, it operates within a global framework. The firm is an active issuer in international capital markets and has made a name for itself as Finland's first issuer of green and social bonds. All funding from these initiatives is thoroughly secured by the Municipal Guarantee Board, ensuring financial stability.
Contact Information for Further Inquiries
For more information regarding this benchmark issuance or other financial products, Joakim Holmström, Executive Vice President of Capital Markets and Sustainability, can be reached directly at +358 50 444 3638.
Frequently Asked Questions
What is the maturity date of the new benchmark issued by Municipality Finance?
The new benchmark will mature on February 2, 2029.
What interest rate structure is employed for this benchmark?
The benchmark will bear a floating interest rate based on Compounded SOFR plus an additional 100 basis points per annum.
When is the public trading for this benchmark expected to commence?
Public trading is anticipated to begin on January 22, 2025, following the issuance date.
Who are the Joint Lead Managers for this bond issue?
Nomura International PLC and Bank of Montreal Europe Plc are acting as the Joint Lead Managers for this issuance.
Who benefits from MuniFin's funding?
MuniFin primarily serves municipalities and public sector entities, aiding in projects that contribute to social and environmental sustainability.
