Municipality Finance Launches New EUR 40M Zero Coupon Notes

Municipality Finance Launches New EUR 40M Zero Coupon Notes

Municipality Finance Plc is taking an important step in its financing strategy by issuing EUR 40 million in zero coupon notes. This initiative aims to further contribute to its mission of building a sustainable future through responsible lending.

The institution will officially issue these notes on 23 June 2025, with a maturity date set for 23 June 2065. Notably, MuniFin holds the right to redeem these notes early by 23 June 2035, adding flexibility to its financial strategies. These measures exemplify MuniFin's proactive approach in managing its debt instruments.

Details of the Issuance Process

This issuance is made under Municipality Finance's robust EUR 50 billion programme for debt instruments. As a market leader in the Finnish financial sector, the process emphasizes transparency and accessibility to stakeholders. Interested parties can find the final terms and offering circular in English on the company's official website.

Market Admission and Trading

MuniFin has sought to have the new zero coupon notes admitted to trading on the Helsinki Stock Exchange, managed by Nasdaq Helsinki. Public trading is projected to begin shortly after the issuance date, primarily on 24 June 2025. This listing underscores the company's commitment to maintaining a competitive presence in European capital markets.

Role of Goldman Sachs

Goldman Sachs Bank Europe SE has been appointed as the dealer for this notes issue. Their expertise in underwritings and market insights plays a crucial role in successfully navigating the complexities of the issuance process. Collaboration with such established financial institutions reinforces MuniFin’s confidence in delivering value to its investors.

Company Overview and Mission

Municipality Finance Plc, also known as MuniFin, stands as one of Finland's most significant credit institutions. The organization is substantially owned by Finnish municipalities, the public sector pension fund Keva, and the State of Finland. With an impressive balance sheet exceeding EUR 53 billion, MuniFin plays a vital role in financing sustainable initiatives.

Commitment to Sustainability

MuniFin is dedicated to financing projects that enhance environmental and social well-being. The institution serves a diverse clientele, including municipalities, joint municipal authorities, and non-profit organizations that meet specific criteria. Financial support is allocated to critical areas such as public transportation, healthcare facilities, educational institutions, and housing for vulnerable populations.

Global Presence in Financial Markets

While MuniFin’s clientele is predominantly domestic, its operations extend to a global financial landscape. The company has made a significant impact as an active bond issuer in the international capital markets. Notably, MuniFin is recognized as Finland's inaugural issuer of both green and social bonds, emphasizing its leadership in sustainable financing.

Frequently Asked Questions

What are the details of the new zero coupon notes issued by MuniFin?

The zero coupon notes amount to EUR 40 million with a maturity date of 23 June 2065 and the option for early redemption by 23 June 2035.

Who is managing the issue of the notes?

Goldman Sachs Bank Europe SE acts as the dealer for the issuance of these notes, utilizing their market expertise.

When is the public trading expected to begin?

Public trading of the notes is expected to commence on 24 June 2025 on the Helsinki Stock Exchange.

What role does MuniFin play in sustainable development?

MuniFin finances a variety of projects aimed at improving environmental and social outcomes across Finland.

Who are the main stakeholders in Municipality Finance?

The key stakeholders include Finnish municipalities, the State of Finland, and the public sector pension fund Keva.

About The Author

Dominic Sanders here, a writer and financial specialist committed to helping my readers understand the world of finance. Having a strong financial background and a lot of experience, I concentrate on using my blog posts and articles to translate difficult financial subjects into understandable, doable advice. My goal in writing is to arm you with the information and skills need to make wise financial choices.

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