Introduced Green Benchmark by Municipality Finance
Municipality Finance Plc has recently announced the issuance of a significant EUR 1 billion green benchmark. This step marks an essential development in the company’s ongoing commitment to sustainability and sustainable investing.
Details of the Benchmark
Set to be issued on 10 June, the green benchmark features a maturity date of 14 June 2032 and stipulates a fixed interest rate of 2.625% per annum. This issuance showcases MuniFin’s capability to attract investment for projects that prioritize environmental responsibility.
Investment Framework
The benchmark is part of MuniFin’s comprehensive EUR 50 billion programme designed for debt instrument issuance. The funding generated from this benchmark will support various public sector initiatives that are environmentally friendly and socially responsible.
Public Trading Details
MuniFin has put forth an application for the benchmark to be listed on the Helsinki Stock Exchange, managed by Nasdaq Helsinki, with the public trading expected to commence shortly after its issuance.
Key Financial Institutions Involved
Prominent financial institutions, including Danske Bank A/S, DZ BANK AG, J.P. Morgan SE, and Skandinaviska Enskilda Banken AB (publ), have stepped up as Joint Lead Managers to oversee this benchmark's issuance. Their involvement underscores the benchmark's significance in the capital markets.
Company Background
Municipality Finance Plc stands as one of the largest credit institutions in Finland. With ownership held by Finnish municipalities, the public sector pension fund Keva, and the State of Finland, the Group maintains a robust balance sheet exceeding EUR 53 billion.
MuniFin's mission is to partner with its customers to cultivate a better and more sustainable future. Their clientele includes various public sector bodies, including municipalities and joint authorities, focusing on sustainable projects such as public transportation improvements, healthcare facilities, and social housing initiatives.
Global Operations with Local Impact
Despite focusing on domestic customers, MuniFin operates within a global economic framework, showcasing its role as a key player in the international capital markets. The institution prides itself on being the first Finnish issuer of green and social bonds and is backed by the Municipal Guarantee Board, adding to its credibility.
Contact Information
For further details regarding this financing or other inquiries related to Municipality Finance plc, interested parties can reach out to Joakim Holmström, Executive Vice President of Capital Markets and Sustainability, via telephone at +358 50 444 3638.
Frequently Asked Questions
What is the purpose of the EUR 1 billion green benchmark?
The green benchmark is designed to finance environmentally and socially responsible projects within public services.
When will public trading for the benchmark start?
Public trading for the benchmark is expected to begin on 10 June following its issuance.
Which financial institutions are involved in this issuance?
Key financial institutions include Danske Bank A/S, DZ BANK AG, J.P. Morgan SE, and Skandinaviska Enskilda Banken AB as Joint Lead Managers.
Who are the main stakeholders in Municipality Finance Plc?
Stakeholders include Finnish municipalities, the public sector pension fund Keva, and the State of Finland.
How does Municipality Finance contribute to sustainability?
They focus on financing projects that provide social and environmental benefits, such as sustainable buildings and transportation initiatives.
