Municipality Finance Successfully Issues GBP 100 Million Notes

Author: Caleb Price Updated: 09-12-2024 03:15 AM

Municipality Finance Successfully Issues GBP 100 Million Notes

Municipality Finance Plc has recently made headlines by issuing GBP 100 million notes under its Medium-Term Note (MTN) programme, showcasing its commitment to advancing sustainable financing initiatives.

Details of the Note Issuance

On 13 September, Municipality Finance officially launched this significant issuance, with the notes set to mature on 17 September 2028. Additionally, the company holds the option to redeem these notes early on 17 September 2025, offering flexibility to manage its financial strategies effectively.

These newly issued notes carry a fixed interest rate of 4.10% per annum, making them an attractive investment for those interested in stable, long-term returns. The issuance is part of MuniFin's broader EUR 50 billion programme for debt instruments.

Trading and Market Participation

In terms of market integration, MuniFin has applied for these notes to be listed for trading on the Helsinki Stock Exchange, operated by Nasdaq Helsinki. Public trading is anticipated to commence shortly after the issuance, continuing MuniFin's active presence in capital markets.

Jefferies GmbH has been appointed as the dealer for this note issuance, reinforcing the firm’s position as a trusted partner for capital market activities.

MuniFin's Commitment to Sustainable Investments

Municipality Finance Plc, one of Finland's largest credit institutions, holds a firm belief in creating a better and more sustainable future through its operations. It is owned by Finnish municipalities, the public sector pension fund Keva, and the Republic of Finland, reflecting a structure that prioritizes local needs and responsible financing.

With a balance sheet exceeding EUR 50 billion, MuniFin plays a pivotal role in financing essential services. Its clients include municipalities, joint municipal authorities, and nonprofit organizations, demonstrating a wide-ranging commitment to community betterment.

Focus Areas of Lending

The funds raised through such notes are channeled into environmentally and socially responsible projects, including public transportation, the construction of sustainable buildings, hospitals, schools, healthcare centers, and facilities for individuals with special needs. This not only elevates the quality of life within communities but also promotes economic growth.

Global Accessibility and Local Impact

MuniFin's customer base is primarily domestic; however, its operations span a global marketplace. As an active issuer in the international bond market, MuniFin has proudly positioned itself as Finland's first issuer of green and social bonds, ensuring that the projects financed meet high sustainability standards.

All funding provided by MuniFin is guaranteed by the Municipal Guarantee Board, ensuring security for investors and reinforcing the institution's stability in financial markets.

Further Information

For those interested in more information, Joakim Holmström, Executive Vice President of Capital Markets and Sustainability, can be contacted directly at +358 50 444 3638.

Frequently Asked Questions

What is the purpose of the GBP 100 million notes issued by MuniFin?

The GBP 100 million notes are aimed at financing sustainable projects across various sectors, such as public infrastructure and community services.

Who is handling the trading of these notes?

Jefferies GmbH is the appointed dealer for the issuance of these notes, facilitating their market entry and trading.

What types of projects does MuniFin typically finance?

MuniFin finances environmentally and socially responsible projects, including transportation, healthcare facilities, and educational institutions.

Where will the notes be traded?

The notes are expected to be traded on the Helsinki Stock Exchange, enhancing MuniFin's visibility in the capital markets.

Who can invest in these notes?

Investors interested in stable, long-term debt instruments can consider investing in these notes, which offer fixed interest returns.

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Municipality Finance Successfully Issues GBP 100 Million Notes