Municipality Finance Introduces New Debt Notes
Municipality Finance Plc has successfully launched a new issuance of EUR 20 million notes under its Medium Term Note (MTN) programme. This strategic move reflects MuniFin's commitment to financing critical projects that contribute positively to communities and the environment.
Key Features of the Notes
These newly issued notes are set to mature on 5 November 2035. Interestingly, MuniFin retains the option to redeem these notes early on 5 November 2025. The notes will initially have a fixed interest rate of 3.87% per annum until the early redemption date. Following this, the interest rate will adjust to a lower rate of 3.00% per annum unless MuniFin opts for early redemption.
Debt Instruments Under MTN Programme
This issuance is part of MuniFin's expansive EUR 50 billion debt instruments programme, which aims to provide financial opportunities to local municipalities and other public sector entities.
Trading and Dealer Information
MuniFin has applied for the newly issued notes to be listed and traded on the Helsinki Stock Exchange, with public trading anticipated to begin shortly after the issuance date.
Role of UBS Europe SE
UBS Europe SE serves as the dealer for this issuance, helping to facilitate the transaction and support MuniFin's objectives in raising capital.
About Municipality Finance
As one of Finland's foremost credit institutions, MuniFin plays a pivotal role in public finance. The company operates with the backing of Finnish municipalities, the Republic of Finland, and the public sector pension fund Keva, boasting a balance sheet of over EUR 50 billion.
Commitment to Sustainability
MuniFin's efforts are primarily directed towards fostering a sustainable future, catering to various customers that include municipalities and non-profit organizations focused on eco-friendly initiatives. The funds raised are specifically intended for projects such as improved public transportation, healthcare facilities, and resource-efficient buildings.
Global Presence
Although MuniFin targets local clients, its operations are interconnected with the global capital market, making it an active player in international bond issuance. Notably, it holds the distinction of being the first Finnish issuer of green and social bonds, all backed by the Municipal Guarantee Board, thus ensuring a secure investment environment.
Further Information
For more details about this issuance and MuniFin’s operations, interested parties can contact Joakim Holmström, the Executive Vice President responsible for Capital Markets and Sustainability, at +358 50 444 3638.
Frequently Asked Questions
What are the key details of the EUR 20 million notes?
The notes have a fixed interest rate of 3.87% until 2025 and will mature in 2035, with an early redemption option available.
Who is the dealer for this note issuance?
UBS Europe SE is the dealer facilitating the issuance of the notes.
When will the notes commence trading?
Expected trading for the notes is set to begin on 5 November 2024.
What is the purpose of the funds raised through these notes?
The funds will primarily support environmentally and socially responsible projects across various Finnish municipalities.
How does MuniFin support sustainable initiatives?
MuniFin finances projects like public transportation, healthcare, and schools, enhancing community wellbeing while promoting sustainable practices.
