Municipality Finance's EUR 40 Million Note Issuance Overview
Municipality Finance Issues EUR 40 Million Notes
Municipality Finance Plc has announced the issuance of EUR 40 million in notes as part of its Medium Term Notes (MTN) programme. This issuance is set to take place on 12 May 2025, with the notes maturing on 14 May 2029. The unique feature of these notes is their interest, which is pegged to the 3-month EURIBOR, plus an additional 22.5 basis points per annum. This structure aims to provide flexibility and responsiveness to floating market rates, ensuring competitive benefits for both the issuer and investors.
Details of the Issuance
The notes are being offered under MuniFin's broader EUR 50 billion debt instruments programme, which is designed to support a variety of sustainable lending initiatives. Interested parties can find detailed documents such as the offering circular and final terms of the notes on the company’s official website.
Trading and Exchange Information
MuniFin has expressed intentions to have these notes included for trading on the Helsinki Stock Exchange, managed by Nasdaq Helsinki, with public trading expected to commence shortly after the issuance date. This move is anticipated to enhance the liquidity of the notes and provide investors with a viable option on the exchanges.
Role of Financial Institutions
The issuing process involves DNB Bank ASA serving as the dealer for these notes. This collaboration is crucial, as DNB brings experience and expertise in the European markets, ensuring a smooth process from issuance to trading.
About Municipality Finance Plc
Municipality Finance Plc, commonly known as MuniFin, stands as one of Finland’s most substantial credit institutions. Its ownership includes various Finnish municipalities, the public sector pension fund Keva, and the State of Finland, collectively contributing to a robust balance sheet exceeding EUR 53 billion.
Commitment to Sustainability
MuniFin is deeply committed to fostering sustainable development in collaboration with its clients, who encompass municipalities, joint municipal authorities, and various non-profit organizations. The funding provided is directed towards socially responsible initiatives—this includes sustainable transportation projects, healthcare centers, educational facilities, and housing solutions for individuals with special needs.
Global Presence and Environmental Impact
While MuniFin primarily operates within Finland, it engages actively in the global capital markets as a bond issuer. The organization prides itself as the pioneering issuer of Finnish green and social bonds, emphasizing its dedication to environmental and social governance. The funding received is guaranteed by the Municipal Guarantee Board, ensuring a solid backing for its financing endeavors.
Further Information
For more insights on Municipality Finance Plc and its initiatives, individuals can contact Joakim Holmström, Executive Vice President of Capital Markets and Sustainability, directly at +358 50 444 3638.
Frequently Asked Questions
What are the key features of the EUR 40 million notes?
The notes feature a maturity period of four years, with interest linked to the 3-month EURIBOR plus 22.5 basis points.
When are the notes expected to begin trading?
Public trading for the notes is anticipated to start on 12 May 2025.
Who is responsible for managing the note issuance?
DNB Bank ASA is acting as the dealer for the note issuance process.
What types of projects does MuniFin support?
MuniFin finances a variety of projects aimed at social and environmental sustainability, including public transportation, healthcare facilities, and housing projects for vulnerable populations.
How does MuniFin ensure its operations are sustainable?
Through its focus on lending for environmentally and socially responsible projects, MuniFin strengthens its commitment to sustainability in all aspects of its operations.
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