Municipality Finance Announces NOK 1 Billion Notes Issuance
Municipality Finance Issues NOK 1 Billion Notes
Municipality Finance Plc has made a significant announcement regarding its issuance of NOK 1 billion in notes, marking a pivotal moment under its Medium Term Note (MTN) programme. This move is part of a broader strategy to support various investment initiatives that promote sustainability and community wellbeing.
Details of the Issuance
The issuance is set to occur on 28 October 2025, allowing the company to tap into essential funding for its projects. These notes will mature on 28 October 2030 and carry a floating interest rate linked to the 3-month Nibor, with an added margin of 21 basis points per annum.
Market Participation and Trading
MuniFin, as the company is colloquially known, will apply for these notes to be traded on the Helsinki Stock Exchange, managed by Nasdaq Helsinki. The anticipated start of public trading aligns with the issuance date, expected to enhance market participation and investor engagement.
Role of Nordea Bank
Nordea Bank Abp has been appointed as the Dealer facilitating the issuance process. This partnership is crucial for ensuring a smooth transition from issuance to trading, reinforcing MuniFin’s reliability in the capital market.
MuniFin's Commitment to Sustainability
MuniFin is not just another financial institution; it plays a pivotal role in financing projects that bring tangible benefits to communities across Finland. The company's clientele includes various local government entities, ensuring that the lending supports essential services and infrastructural developments. Projects financed by MuniFin range from sustainable public transportation systems to healthcare facilities and educational institutions.
The Importance of Sustainable Financing
Sustainability is at the forefront of MuniFin’s mission. By concentrating efforts on environmentally and socially responsible investments, the company guarantees that the resources it allocates lead to improved community outcomes. This focus on sustainability extends into their operations on a global scale, where MuniFin strives to maintain a competitive edge while adhering to strict environmental guidelines.
Support Structures Behind MuniFin
With a robust balance sheet exceeding EUR 55 billion, MuniFin is one of the largest credit institutions in Finland. Its ownership structure includes Finnish municipalities, public sector pension funds, and the State of Finland, which solidifies its mandate to serve public interests.
The Global Business Environment
Even though MuniFin primarily serves domestic clients, it functions within the global financial market. The institution remains a proactive issuer of bonds on the international stage, further marking its presence as the first Finnish issuer of green and social bonds. This innovative approach not only aligns with global sustainability trends but also attracts international investors who are increasingly prioritizing responsible investment opportunities.
How to Stay Informed
For those interested in more information or further details about the issuance or MuniFin's projects, Joakim Holmström, the Executive Vice President of Capital Markets and Sustainability, is available for inquiries. He can be reached directly at +358 50 444 3638.
Frequently Asked Questions
What is Municipality Finance's main focus?
Municipality Finance focuses on providing financial solutions for public infrastructures aimed at enhancing community welfare and promoting sustainability.
Who is involved in the notes issuance?
The issuance involves Municipality Finance Plc and Nordea Bank Abp, which acts as the Dealer for the notes.
When will the notes commence trading?
The public trading of the newly issued notes is expected to commence on 28 October 2025.
What is the interest rate on the notes?
The notes will have a floating interest rate linked to the 3-month Nibor with an additional margin of 21 basis points per annum.
How does MuniFin contribute to sustainability?
MuniFin contributes to sustainability by financing projects that support environmental and social responsibility, including healthcare, education, and public transport systems.
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