Municipality Finance Issues EUR 25 Million Notes in MTN Program
Municipality Finance Issues EUR 25 Million Notes
Municipality Finance Plc has recently announced the issuance of EUR 25 million notes under its Medium Term Note (MTN) program. This significant financial move aims to enhance the company’s ability to support sustainable projects across various sectors, including public transportation and healthcare.
Details of the Notes Issuance
The notes will be issued on 3 March 2025, with a maturity date set for 3 March 2034. Importantly, Municipality Finance, also known as MuniFin, retains the right to redeem these notes early after five years, on 3 March 2028, providing flexibility to adapt to market conditions. The interest rate on these notes is fixed at 2.95% per annum, offering a competitive return for investors seeking stable income.
Market Participation and Trading
MuniFin has taken steps to have these notes admitted to trading on the Helsinki Stock Exchange, which is managed by Nasdaq Helsinki. The commencement of public trading for these notes is anticipated to begin on 3 March 2025. This move aligns with MuniFin’s strategy to enhance transparency and accessibility for investors.
The Role of DZ BANK AG
DZ BANK AG, located in Frankfurt am Main, is serving as the dealer for this issuance. The involvement of a reputable institution like DZ BANK underscores the financial market confidence in MuniFin’s operations and strategies.
About Municipality Finance
MuniFin stands as one of the largest credit institutions in Finland, with ownership held by Finnish municipalities, the public sector pension fund Keva, and the State of Finland. This structure ensures that MuniFin operates with a strong mandate to promote public welfare and sustainability.
Sustainable Financial Initiatives
With a balance sheet exceeding EUR 53 billion, MuniFin is committed to building a better and more sustainable future through its lending practices. The clientele includes municipalities, joint municipal authorities, and various organizations focused on environmentally responsible projects. Key funding areas include public transportation systems, healthcare facilities, and educational institutions.
Global Operations and Market Presence
Even though MuniFin’s primary customers are domestic, the company operates in a global business landscape. As an active issuer in international bond markets, MuniFin holds the distinction of being Finland's first issuer of green and social bonds, thereby promoting sustainability in financing.
Contact Information
For more information on this issuance or Municipality Finance Plc, please contact:
Joakim Holmström
Executive Vice President, Capital Markets and Sustainability
Tel. +358 50 444 3638
Frequently Asked Questions
What is the purpose of the EUR 25 million notes issuance?
The notes are issued to finance sustainable projects that benefit the public sector, including infrastructure and healthcare.
When will the notes mature?
The notes will mature on 3 March 2034.
Who manages the trading of the notes?
The notes will be traded on the Helsinki Stock Exchange, managed by Nasdaq Helsinki.
What is the interest rate on the notes?
The notes carry a fixed interest rate of 2.95% per annum.
Who can invest in these notes?
These notes are open to public investors interested in sustainable finance and public projects.
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