Municipality Finance Launches EUR 20 Million Zero Coupon Notes
Municipality Finance Announces EUR 20 Million Zero Coupon Notes
Municipality Finance Plc has recently issued EUR 20 million in zero coupon notes as part of its medium-term note (MTN) programme. This strategic move, designed to bolster its financial capacity, is set against a backdrop of ongoing developments in the financial markets.
Details of the Zero Coupon Notes
The newly issued notes will mature twenty years from now, specifically on July 28, 2065. Interestingly, Municipality Finance retains the right to redeem these notes early, as feasible, on July 28, 2033. This structure allows for flexible management of financial resources, benefiting both the issuer and investors alike.
MTN Programme and Investor Opportunities
These notes are part of Municipality Finance's expansive EUR 50 billion MTN programme. Such programmes are crucial for institutions as they facilitate the regular issuance of debt, allowing for better fundraising mechanisms while providing a range of investment options for buyers. More detailed documents, including the offering circular and final terms, can be found on the official Municipality Finance website.
Trading Prospects in Financial Markets
Municipality Finance has applied for its notes to be listed and traded on the Helsinki Stock Exchange, which is maintained by Nasdaq Helsinki. This admission is set to commence on July 28, 2025. Such a listing enhances liquidity, making it more attractive for investors and contributing to the overall robustness of the municipal finance landscape.
Financial Guardianship and Aspirations
Goldman Sachs Bank Europe SE is acting as the primary dealer for these notes, further solidifying the financial institution's pivotal role in facilitating capital market activities. The expert involvement of well-regarded banks enhances investor confidence, ensuring ongoing engagement in the municipal debt offerings.
About Municipality Finance Plc
MuniFin (Municipality Finance Plc) stands out as one of Finland's largest credit institutions. The ownership spans several stakeholders, including Finnish municipalities, the State of Finland, and the public sector pension fund Keva. With a balance sheet revealing over EUR 53 billion, MuniFin plays a significant role in regional financial ecosystems.
Commitment to Sustainable Development
The overarching vision of Municipality Finance is to foster a better, sustainable future in partnership with its clients. Its clientele comprises municipalities, joint municipal authorities, and various nonprofit organizations. This collaboration leads to investments in sustainable initiatives such as public transport systems, environmentally-friendly buildings, healthcare facilities, and educational institutions.
Global Footprint of MuniFin
While primarily serving domestic customers, MuniFin operates within a global marketplace. The institution is a prominent issuer of bonds internationally and makes strides as Finland’s first green and social bond issuer. Its operations demonstrate a commitment to socially responsible projects while ensuring funding operations are securely underwritten by the Municipal Guarantee Board.
Contact Information
For further inquiries or detailed information, Joakim Holmström serves as the Executive Vice President for Capital Markets and Sustainability. He can be reached directly at +358 50 444 3638.
Frequently Asked Questions
What are zero coupon notes?
Zero coupon notes are bonds that do not pay interest during their lifespan. They are issued at a discount and mature at face value.
Why is Municipality Finance issuing these notes?
The issuance is aimed at enhancing financial capacity for sustainable developments and providing funding for necessary public projects.
What is the maturity date for these zero coupon notes?
The notes will mature on July 28, 2065, offering a long-term investment opportunity.
Who is the dealer for the note issuance?
Goldman Sachs Bank Europe SE is acting as the dealer for the issuance of these notes.
How does the MTN programme work?
The MTN programme allows Municipality Finance to issue notes on a continuous basis, providing flexibility to meet various funding needs.
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