Municipality Finance Launches EUR 25 Million Debt Offering

Overview of Municipality Finance's New Notes Issuance

Municipality Finance Plc has announced its latest financing initiative, issuing EUR 25 million in notes under its Medium Term Note (MTN) program. This strategic move aims to provide funding for various projects aimed at enhancing sustainability and improving public infrastructure.

Details of the Notes Issued

The notes will be issued on October 16, 2024, with a maturity date set for October 16, 2029. An interesting feature of these notes is that Municipality Finance has the option to redeem them early on October 16, 2025, and annually thereafter. They carry a fixed interest rate of 2.75% per year until the first early redemption date, after which, if not redeemed, the interest rate adjusts to 2.40% per annum.

Financial Instruments Under the MTN Program

This issuance falls under MuniFin’s EUR 50 billion MTN programme, designed for providing debt instruments that cater to the institution's funding needs. MuniFin has committed to transparency by making the offering circular and other relevant documents publicly accessible in English on their official website.

Market Impact and Trading Status

In a proactive step toward transparency and investor engagement, MuniFin has applied for the notes to be traded on the Helsinki Stock Exchange, with public trading expected to commence on the same day as the issuance. This underlines the company’s commitment to keeping investors informed and involved.

Facilitating the Issue

NATIXIS SA from Paris has been appointed as the dealer for this issuance, indicating a partnership aimed at successfully navigating the market for these notes. The involvement of reputed financial institutions often bolsters investor confidence.

About Municipality Finance

MuniFin is one of the most significant credit institutions in Finland. Owned by Finnish municipalities, the public sector pension fund, and the Republic of Finland, it stands as a pillar of support for local governments. The Group boasts a balance sheet that exceeds EUR 50 billion, enabling substantial investment in public projects.

Funding Sustainable Development

With a clear focus on sustainability, MuniFin finances projects that not only improve public services but are also environmentally conscious. Its clients include local municipalities, joint municipal authorities, and other entities that fall under their jurisdiction. The funds raised are typically allocated towards vital infrastructure improvements such as public transportation, healthcare facilities, educational institutions, and affordable housing.

Global Presence and Local Commitment

While MuniFin's operations are localized within Finland, it competes in an international climate, issuing bonds globally to raise funds. It has made strides as the first Finnish issuer of green and social bonds, enhancing its reputation in ethical funding.

Contact Information

For further inquiries, Joakim Holmström, who serves as the Executive Vice President for Capital Markets and Sustainability, is available at +358 50 444 3638. His role is instrumental in MuniFin’s strategic financial initiatives and sustainability endeavors.

Frequently Asked Questions

What is the total amount Municipality Finance has issued in notes?

Municipality Finance is issuing a total of EUR 25 million in notes under its MTN program.

What is the maturity date of the newly issued notes?

The maturity date for these notes is October 16, 2029.

Who is the dealer for the notes issuance?

NATIXIS SA from Paris is acting as the dealer for this issuance.

What types of projects does Municipality Finance fund?

MuniFin funds projects that focus on public services and sustainability, such as healthcare, education, and public transportation.

Where can information about the notes be found?

Details about the notes and relevant documents can be found on Municipality Finance's official website.

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