Municipality Finance Launches SEK 4 Billion Green Bond Offering
Municipality Finance Announces SEK 4 Billion Green Bond
Municipality Finance Plc has taken a significant step in promoting sustainable finance by issuing a green bond totaling SEK 4 billion. This bond is part of their broader Medium Term Note (MTN) programme and will facilitate investments in environmentally friendly projects.
Details of the Green Bond Issuance
The green bond will officially be issued on November 19, 2024, with a maturity date set for November 19, 2029. It will yield a fixed annual interest rate of 2.4825%
This issuance comes under MuniFin's extensive EUR 50 billion debt instrument programme. The details surrounding the bond, including offering circulars and final terms, will be provided on the company’s investor page, ensuring transparency and accessibility for potential investors.
Trading and Market Integration
MuniFin has also applied for the bonds to be recognized for trading on the Helsinki Stock Exchange, managed by Nasdaq Helsinki. The expectation is for public trading activity to commence shortly after the bond's issuance, opening up a new channel for investors interested in green finance.
Supporting Sustainable Projects
Funds raised from these bonds will support a variety of projects. MuniFin primarily lends to municipalities, joint authorities, and other public entities in Finland, focusing on projects that are both environmentally and socially responsible. These projects can include advancements in public transport, sustainable construction, healthcare facilities, educational institutions, and affordable living options for vulnerable populations.
Who Handles the Bond Issue?
Danske Bank A/S has been appointed as the Dealer for this bond issue, overseeing the distribution and related financial activities.
The Role of MuniFin in the Financial Landscape
MuniFin is regarded as one of Finland's leading credit institutions. The company enjoys robust backing, being owned by Finnish municipalities, the public sector pension fund, and the Republic of Finland. It boasts a balance sheet exceeding EUR 50 billion, signifying its substantial presence in the finance market.
Global Operations and Market Presence
While MuniFin mainly serves customers within Finland—including municipalities and various authorities—its operations are situated within a global context. The company is recognized for its pioneering role as Finland's first issuer of green and social bonds in international markets, backed exclusively by the Municipal Guarantee Board.
Frequently Asked Questions
What is a green bond?
A green bond is a fixed-income financial instrument used to raise funds for projects with environmental benefits. They are designed to support sustainable development initiatives.
Why did Municipality Finance issue a green bond?
To finance projects that promote environmental sustainability, such as public transportation, healthcare, and affordable housing.
When will the green bond mature?
The bond will mature on November 19, 2029, five years after its issuance date.
Who is the Dealer for the bond issue?
Danske Bank A/S has been appointed as the Dealer for this green bond issuance.
How can investors find more information about the bond?
Investors can access detailed information, including the offering circular and final terms, on the Municipality Finance website.
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