Municipality Finance Expands MTN Programme with New Tranche
Municipality Finance Enhances Debt Instrument Availability
Municipality Finance Plc has recently announced the issuance of a USD 50 million tap under its existing Medium-Term Note (MTN) programme. This strategic move complements an earlier benchmark issued in January, showcasing the company's commitment to expanding its financial capabilities. With this new tranche, the total nominal amount of the benchmark has now reached USD 550 million, set to mature on February 2, 2029. The benchmark's interest rate is established as a floating rate, correspondingly linked to Compounded SOFR plus an additional 100 basis points per annum.
Engagement with Financial Markets
This issuance falls under MuniFin's impressive EUR 50 billion programme dedicated to the issuance of debt instruments. MuniFin has applied for the newly issued benchmark to be traded on the Helsinki Stock Exchange, which operates under Nasdaq Helsinki. Public trading is anticipated to begin shortly, indicating a robust market presence and access.
Key Partnerships and Dealer Engagement
In facilitating this issuance, Nomura International PLC has been designated as the Dealer. Their expertise will assist in managing the engagement and distribution of the new tranche, which is instrumental in furthering MuniFin’s goals in the capital markets.
Socially Responsible Financing Initiatives
MuniFin is not just another financial institution; it plays a pivotal role in supporting socially and environmentally responsible investments within Finland. By providing funding, the company enables municipalities to invest in vital infrastructure projects, including public transportation, sustainable buildings, healthcare facilities, and more. This not only underlines MuniFin’s commitment to sustainable development but also highlights its diverse customer base, which includes municipalities, joint municipal authorities, and entities focused on affordable social housing.
Furthermore, MuniFin operates within a global business framework, actively participating as a Finnish bond issuer in international capital markets. The firm takes pride in being the first issuer of both green and social bonds in Finland, thereby advancing its mission to fund projects that exhibit social value.
Company Background and Vision
Founded as one of Finland's largest credit institutions, MuniFin is owned by various Finnish municipalities, the public sector pension fund Keva, and the Finnish government. The company boasts a robust balance sheet exceeding EUR 53 billion, reinforcing its status as a key player in the financial landscape.
MuniFin’s mandate focuses on lending for projects designed with social impact in mind. Whether it's financing for schools, healthcare centers, or even housing for people with special needs, every loan issued contributes to building a healthier, more sustainable community.
Further Information on Municipality Finance
If you would like to learn more about MuniFin, including their offerings and vision for the future, you may reach out to: Joakim Holmström, Executive Vice President for Capital Markets and Sustainability at +358 50 444 3638. The company continues to pave the way for responsible investment solutions, aiming to cater to the financing needs of Finland's municipalities and related entities.
Frequently Asked Questions
What was the amount issued in the new tranche?
The new tranche issued by Municipality Finance is USD 50 million.
When did the original benchmark get issued?
The original benchmark was issued on January 22, 2025.
What is the interest rate for the benchmark?
The benchmark bears interest at a floating rate set equal to Compounded SOFR plus 100 bps per annum.
Which dealer is managing the new tranche issuance?
Nomura International PLC is acting as the Dealer for the issuance of the new tranche.
What types of projects does MuniFin support?
MuniFin supports environmentally and socially responsible projects including schools, hospitals, and public transportation initiatives.
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