Municipality Finance Successfully Issues NOK 1 Billion Tap

Municipality Finance's Recent Financial Move

Municipality Finance Plc has made a significant step in its financial strategy by issuing a NOK 1 billion tap under its Medium Term Note (MTN) programme. This move demonstrates their commitment to strengthening their financial position and continuing to support sustainable initiatives alongside their financial partners.

The Details of the New Tranche

This new tranche, which was announced on the 17th of September, is linked to existing notes issued on June 6, 2025. With this addition, the total nominal amount of these notes has now reached NOK 3.250 billion. These notes feature a maturity date set for January 6, 2031, and bear a fixed interest rate of 4.125% per annum, making them an attractive investment opportunity for stakeholders.

Funding Under the MTN Programme

The issuance is part of Municipality Finance's EUR 50 billion programme dedicated to debt instruments, reinforcing its robust position in the European market. This move is not only focused on the numbers but also aligns with their mission to finance projects that have a positive impact on communities.

Trading and Market Admission

MuniFin has taken steps to ensure the new tranche will be traded on the Helsinki Stock Exchange, with public trading expected to start promptly. This highlights the company's transparency and dedication to maintaining strong relationships with capital markets. Existing notes within this series have already been admitted to trading, indicating a solid level of investor confidence.

Role of the Dealer

Supporting the Issue

To facilitate the issuance of this tranche, Skandinaviska Enskilda Banken AB (publ) has been appointed as the Dealer, a key partner in ensuring the smooth execution of this financial operation. Their expertise and reputation in the market are critical for successfully managing these transactions.

About Municipality Finance Plc

MuniFin stands as one of Finland's largest credit institutions, with a balance sheet exceeding EUR 55 billion. The company's stakeholders include Finnish municipalities, the public sector pension fund, and the Finnish state, which underscores the importance of communal financial health in their operations.

Investing in Sustainable Development

At the heart of MuniFin's operations is a commitment to building a sustainable future. The company finances a variety of environmentally friendly and socially responsible initiatives. Their clients span municipalities, healthcare facilities, educational institutions, and affordable housing sectors, highlighting the diverse impact of their lending.

Global Operations with Local Commitment

While MuniFin serves a primarily domestic clientele, its operations unfold within a broader global environment. The company is a pioneering Finnish bond issuer on international capital markets and takes pride in being the first issuer of green and social bonds in Finland. The Municipal Guarantee Board guarantees all funding, ensuring enhanced security for investors.

Frequently Asked Questions

What is the recent financial action taken by Municipality Finance?

Municipality Finance has issued a NOK 1 billion tap under its MTN programme, increasing its total notes to NOK 3.250 billion.

What is the interest rate for the new tranche of notes?

The new tranche bears a fixed interest rate of 4.125% per annum, making it a competitive option for investors.

When will public trading of the new tranche commence?

Public trading of the new tranche is expected to begin shortly after its issuance, which aligns with their listing on the Helsinki Stock Exchange.

Who is the Dealer supporting this issuance?

Skandinaviska Enskilda Banken AB (publ) has been appointed as the Dealer for the new tranche issuance.

What sectors does MuniFin focus on for its investments?

MuniFin invests in sustainable projects such as public transportation, healthcare facilities, educational institutions, and affordable housing, ensuring a positive community impact.

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