Municipality Finance Unveils EUR 20 Million Zero Coupon Notes

Municipality Finance Introduces EUR 20 Million Zero Coupon Notes

Municipality Finance Plc has recently announced the issuance of EUR 20 million in zero coupon notes. This financial move is part of its Medium-Term Note (MTN) programme, aiming at extending its offerings and providing opportunities for sustainable investments.

Details of the Issuance

The issuance of these notes will take place on 28 July 2025, with a maturity date set for 28 July 2065. Notably, Municipality Finance has the option to redeem these notes early on 28 July 2033. This flexibility in redemption can be an attractive feature for investors, allowing them to adjust their positions based on market conditions.

Programme Overview and Trading Information

This issuance is part of Municipality Finance's extensive EUR 50 billion debt instrument issuance programme. Such substantial programmes underline the organization's commitment to participating actively in the financial markets, enabling it to fund various growth initiatives.

These notes have been submitted for trading on the Helsinki Stock Exchange, which is part of Nasdaq Helsinki. Trading is anticipated to commence shortly after the issuance date, signalling an eagerness to engage with investors and enhance liquidity.

Role of Goldman Sachs

Goldman Sachs Bank Europe SE has been appointed as the dealer for this note issuance, bringing its vast expertise in capital markets to assist Municipality Finance in this endeavour. The involvement of a reputable dealer ensures that the issuance process runs smoothly and efficiently.

Understanding Municipality Finance's Impact

MuniFin is recognized as one of the largest credit institutions in Finland, supported by a robust ownership structure that includes Finnish municipalities, the public sector pension fund, Keva, and the State of Finland. With a group balance sheet exceeding EUR 53 billion, Municipality Finance is strategically positioned to contribute effectively to public development projects.

Commitment to Sustainable Development

The organization's mission centers on building a sustainable future in collaboration with its clients, which include municipalities, joint municipal authorities, and various non-profit organizations. Investments targeted by MuniFin consist of socially and environmentally responsible projects such as public transportation systems, healthcare facilities, and educational institutions.

Global Engagement in Capital Markets

Operating in a global business environment, MuniFin has established itself as an active issuer of bonds in international capital markets. It holds the distinction of being the first Finnish issuer of green and social bonds, showcasing its commitment to sustainability while broadening its financing options.

Contact Information

For further inquiries regarding this announcement or its implications, please reach out to:

Joakim Holmström
Executive Vice President, Capital Markets and Sustainability
Tel: +358 50 444 3638

Frequently Asked Questions

What are zero coupon notes?

Zero coupon notes are debt securities that do not pay interest during their life. Instead, they are issued at a discount and pay their face value at maturity.

What is the maturity date of the notes issued by Municipality Finance?

The maturity date for the recently issued notes is set for 28 July 2065.

Who acts as the dealer for these notes?

Goldman Sachs Bank Europe SE acts as the dealer for the issuance of these notes.

How does Municipality Finance contribute to sustainability?

MuniFin supports environmentally friendly and socially responsible projects, including public transport, educational facilities, and healthcare centres.

Where can I find more information about Municipality Finance?

More detailed information can be found on Municipality Finance's official website, which provides insights into their programmes and offerings.

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