Noppa the therapy dog works for belly rubs

Noppa comes to the door to greet each new arrival with equal enthusiasm and sometimes even a sloppy kiss. Noppa’s owner, MuniFin’s administrative assistant Laura Kari, watches Noppa’s antics with a smile on her face. One-year-old Noppa has love and time for everyone.

“Noppa is a Stabyhoun, which is a bird dog breed originating in the Netherlands. Stabyhouns are social dogs that have mostly lost their hunting instinct. Noppa likes people, which makes him an ideal office and therapy dog”, Laura Kari explains.

Working from a young age

The door to Sirpala opens and closes several times during our interview, as people come to say hello to Noppa and give him a quick cuddle. Several people also greet the office’s furriest employee through the glass as they pass the room. Noppa is clearly well known in the office. His fame is undoubtedly due to his affectionate nature but also the fact that he has been coming into the office from a young age.

“Noppa was actually only eight weeks old when he first visited the office. I was working from home that day, but I had to pop into the office and I took Noppa with me. At the moment, Noppa does a full day in the office once every couple of weeks. As the office is a bit quieter during the summer months, Noppa’s visits are actually more frequent right now”, Kari says.

Noppa’s typical day at work

Noppa has a fairly well-established routine for the days when he is in the office.

“Noppa’s typical day begins when we arrive at the office together around eight in the morning. Mornings and mid-mornings are Noppa’s busiest time when he is at his most energetic. Lots of people come to say hello to Noppa and to play with him. Around eleven, we go out for a little walk and to grab some lunch for me. Noppa tends to get a bit tired in the afternoons, and at some point he usually finds himself a peaceful spot for a nap, often either under my desk or my colleague Eeva’s desk.”

Despite the tiring nature of his work, Noppa loves being an office dog.

“Noppa clearly likes being here and meeting people. So far, he seems satisfied with being paid for his services in belly rubs, play and treats”, Kari says.

Noppa relieves stress and brings people closer together

Office dogs and therapy dogs are becoming more and more popular around the world. According to Kari, Noppa has had a particularly big impact on the atmosphere in the office and relationships between people.

“Noppa has allowed me to meet many colleagues whom I would otherwise not know very well. The presence of a dog brings out a very different side of people compared to normal office work. Many of my colleagues are in the habit of having a quick cuddle with Noppa after a stressful meeting, and they say that even a short moment with him lifts their spirits and puts them in a good mood.”

Sirpa Kestilä, who has come to give Noppa a belly rub, agrees.

“We work in a big office with around 150 employees in total. Many of our employees who do not need the assistants’ services as such have come to see Noppa here in Sirpala after hearing about him from their colleagues”, Kestilä says.

An office dog gives people licence to relax and even be a little silly just by being present.

“People often think that working as we do for a financial institution, we need to be serious and formal. But when Noppa is here, even the people in suits get on their hands and knees on the floor to play with him”, Kari says.

“We have a lot of dog lovers among our staff, and for people like me, who used to have dog, Noppa kind of feels like my dog, too”, Kestilä says, ruffling Noppa’s head.

Text: Joonas Holste
Photo: Jari Kinnunen

Strong demand for MuniFin’s new 3-year USD benchmark

The transaction was announced on Tuesday 26th June 2018 with initial price thoughts (“IPTs”) of mid-swaps+5bps area, representing an approximate 2bp new issue premium to fair value. The investor response throughout the European afternoon was strong, with indications of interest exceeding $1.3bn. Books were officially opened in the morning of 27th of June with price guidance revised to mid-swaps+4bps area. The spread was set at mid-swaps +3bps; representing the tightest spread to mid-swaps for MuniFin in this maturity since 2014. The final orderbook was in excess of $1.65bn.

“We are extremely happy with the transaction. The timing was successful and strong book building process enabled us to achieve a desirable funding level. We’ve been constantly building our USD investor base since 2011 and it’s nice to see that the Finnish local government sector still acts as safe haven during volatile market conditions”, says Antti Kontio, Head of Funding and Corporate Responsibility at MuniFin.

There was notable demand from Central Banks and Official Institutions (52%), as well as Bank Treasuries (42%). The participation from Americas-based investors the largest-ever in MuniFin’s USD benchmark, accounting for 66% of the final allocation followed by Europe, Middle East and Africa with 23% share. Asia Pacific accounted for 11% of the transaction.

MuniFin has funding requirements of EUR 7.0 billion for 2018 and after this transaction approximately EUR 4.8 billion has been completed.

Details of the transaction:

Issuer:   Municipality Finance Plc (“MuniFin”)
Rating:   Aa1/AA+ (both stable)
Issue Size:   USD 1.0 billion
Settlement Date:  5th July 2018
Maturity Date:   8th June 2021
Coupon:  2 .75% payable semi-annually
Re-offer Price:  99.700%
Re-offer Yield:  2.858%
Re-offer Vs Benchmark:  T 2.625% 06/15/21+25.8bps
Re-offer Vs Mid-swaps:  +3bps
Lead Managers:   BofA Merrill Lynch, BNP Paribas, RBC Capital Markets, TD Securities


More information:

Joakim Holmström, Head of Capital Markets, +358 9 6803 5674
Antti Kontio, Head of Funding and Corporate Responsibility, +358 9 6803 5634

Finland has the potential to become a forerunner in sustainable financing

– Sustainable financing and sustainable investing are global trends that grow strong in a fast pace. They can have significant effect in steering new investments environmentally sustainable. The multiplicative effects of finance decisions can be enormous, says MuniFin’s President and CEO Esa Kallio, who rang the bell at the new market segment launch at Nasdaq Helsinki.

MuniFin has been the first Finnish green bond issuer. There still are only two green bond issuers in Finland but the launch of the new marketplace is an indication that the situation is going to change.

– It is crucial for us that Finland will become a hotbed of sustainable financing. First of all, that would encourage different actors to make innovative environmental investments and make it possible to reach the Finnish climate goals. On the other hand it would also strengthen Finland’s brand as a leader in sustainable investments, Kallio says.

MuniFin aims to further improve the portfolio of sustainable products. In addition to green bonds, the company also investigates the different options for issuing social impact bonds.

Green finance has proved to be a success

MuniFin’s publicly issued green bonds have had extremely strong investor demand and they have been quickly oversubscribed – the EUR 500 million bond issued in the autumn of 2017 has been the most sought-after bond in the history of MuniFin. It was therefore very tightly priced, and has also performed well in the secondary market.

MuniFin has offered green lending for its customers’ environmental projects since 2016 and the customer demand has been excellent: so far the combined value of the green portfolio is more than EUR 1.0 billion.

The municipality sector plays a key role in the fight against climate change: its projects are often large-scale and have a wide social impact. MuniFin offers municipalities incentives towards sustainable choices by offering green finance at a lower cost than other financing instruments. Green finance can be either loan or leasing finance. 

MuniFin’s framework for green finance specifies the sectors of environmental investment that are eligible for the more affordable green funding. The categories included are renewable energy, public transport, sustainable buildings, water and waste water management, energy efficiency, waste treatment, and environmental management and nature conservation.

Present at the launch of of the Sustainable Bonds Market were MuniFin green finance customers representing the West Metro, the Tampere tramway, a social housing company Lahden Asunnot and the cities of Hämeenlinna and Mikkeli.

Further information:

Esa Kallio, President and CEO, tel. +358 50 337 7953
Antti Kontio, Head of Funding and CSR, tel. +358 50 3700 285
Soili Helminen, Communications Manager, tel. +358 400 204 853

MuniFin receives Environmental Finance’s Green Bond of the Year Award

MuniFin was the winner in the categories of Green Bond of the Year (SSA) and Biggest issuer (local authority).

The winners were not decided by Environmental Finance but by a panel of judges made up of some of the biggest green bond investors.

The most sought after bond in the history of MuniFin

The second-ever green bond in the history of MuniFin, set at EUR 500 million and issued in September, was oversubscribed six times within the first hour.

The transaction was the most sought after bond in the history of MuniFin, and the bond was very tightly priced. The loan continues to be in demand in the secondary markets, and it has had a positive effect on the valuation level of all MuniFin’s euro-denominated benchmark bonds.

2017 saw also the issue of MuniFin’s inaugural privately placed green mond. The subscriber of the AUD-denominated private placement was the Japanese life insurance company Fukoku Life.

Green finance, earmarked for environmental projects, was first launched for MuniFin’s customers in 2016. In the same year, MuniFin issued its first green bond, subsequently also the first green bond issued by a Finnish credit institution.

The customer demand for green finance has been a positive surprise. The green finance project portfolio reached a milestone by exceeding one billion euros at the turn of the year.

The effectiveness of a green project is especially evaluated through energy-efficiency and reduced carbon dioxide emissions, but indirect effects are also taken into account. A more detailed evaluation of the effects of green financing is available in separate reports, published annually.

See all Environmental Finance’s Green Bond Awards winners >

Further information:

Antti Kontio, Head of CSR, MuniFin
tel. +358 50 3700 285, antti.kontio(at)munifin.fi

MuniFin’s inaugural Responsibility report has been published

Since the lending offered by MuniFin has wide direct and indirect impacts on society, responsibility has been broadly integrated in the company’s strategy. In 2017 MuniFin defined the key principles of responsibility, which have worked as a basis for the Responsibility report. Responsibility at MuniFin is based on four principles: responsible products and services, forerunner in sustainability, improving wellbeing at work and strong corporate governance.

For each key principle, MuniFin has defined indicators and goals, which are monitored annually. MuniFin promotes the achievement of almost all sustainable development goals (SDGs) set by the United Nations.

At the beginning of 2016, MuniFin launched green finance to its customers, a financial product that enables customers’ projects that support sustainable development and climate goals in Finland. During 2017, 25 projects amounting to almost EUR 600 million were added to the green portfolio. The total value of the green portfolio grew to over EUR 1 billion in the end of 2017. The estimated direct annual greenhouse gas emissions avoided for projects approved in 2017 totals approximately 19,400 tons of CO2.

– During the past years we have noticed that the demand for responsible investments is growing fast. We hope that these reports give a new and transparent picture of our responsible operations and commitment in achieving the domestic climate goals, says Esa Kallio, President and CEO at MuniFin.

More information:

Responsibility

Esa Kallio, President and CEO, MuniFin, tel. +348 50 337 7953, esa.kallio(at)munifin.fi

Antti Kontio, Head of Corporate Responsibility, MuniFin, tel. +358 50 370 0285, antti.kontio(at)munifin.fi

Esa Kallio, the new President and CEO of Municipality Finance, swears by collaboration

Esa Kallio has an impressive track record in finance. He has worked for MuniFin since 2005, most recently heading the company’s funding and treasury functions. Since August 2017, he has also acted as an interim President and CEO.

– I am really looking forward to closer cooperation that will enable us to further improve our dialogue with customers. According to MuniFin’s revised vision, our aim is to be the preferred partner of our customers throughout the financing life cycle. We want to be a visionary sparring partner that welcomes challenges and is also able to challenge its customers. Our personnel has in-depth expertise in our customer sectors and this is something I want our customers to take full benefit of, Esa Kallio says.

– Reforms unequalled in scope are currently taking place in our customers’ operating environment. We will assist them in evaluating the practical effects of the future changes and identifying new solutions. At present, we are focusing on customer-oriented development and the digitalisation of our services. This requires close partnerships with our customers, Kallio says.

Changes in MuniFin’s Executive Management Team

Following Esa Kallio’s appointment as the President and CEO of MuniFin, Mari Tyster has been appointed as the deputy to the CEO. Tyster is the company’s Executive Vice President, Legal and Governance and member of the Executive Management Team. Simultaneously, Joakim Holmström and Rainer Holm have been appointed as new members to the Executive Management Team. Furthermore, Holmström, who has headed MuniFin’s funding operations, will assume the responsibility of leading the company’s capital markets operations.

Toni Heikkilä, Jukka Helminen and Marjo Tomminen will continue as members of the Executive Management Team.

MuniFin’s new Responsibility Policy has been published

The Responsibility Policy is a part of MuniFin’s long-term strategy in responsibility. Skillful and responsible personnel that profoundly understand the impacts of MuniFin’s operations and are committed to promoting long-term goals are at the core of the new policy. The policy also serves as a key external policy for stakeholders such as owners, customers, investors, authorities, the media and other stakeholders.

– We are committed to understanding, monitoring and managing the social and environmental impacts of our own operations and the products and services that we offer in order to contribute to the wider goals for sustainable development in the Finnish society. This engagement is integrated in our strategy and values, says Esa Kallio, CEO (interim) at MuniFin.

The Responsibility Policy can be found here >.

More information

Esa Kallio, CEO (interim)
tel. +358 50 337 7953

Strong demand for MuniFin’s longest-ever EUR benchmark

Investor demand was very strong from the outset. The high quality, well diversified and granular investor demand allowed MuniFin to tighten the guidance by 4bps with little price sensitivity. 75 minutes after the announcement books closed in excess of EUR 1.9 billion.

In total, 76 investors participated in the transaction. The order book was dominated by investors from Germany (44.1%) and France (14.4%), followed by the Swiss (8.9%), Nordics (7.8%), Benelux (6.9%), the rest of Europe (6.1%), Asia (6.0%), the UK (5.7%) and the Middle East (0.1%).

Central Banks & Official Institutions (39.6%) represented the largest share of allocations, followed by Asset Manager (20.3%), Insurance companies & Pension Funds (20.0%) and Banks (17.8%).

“We are extremely happy with the strong result. We started issuing EUR benchmark notes in 2016 and have been able to build up a liquid curve, which now consists of four reference points. It is very nice to see that there is strong demand for high-quality issuers like MuniFin. In addition, this is the longest benchmark we have issued”, says Joakim Holmström, Head of Funding.

“With this bond, MuniFin successfully extended their EUR curve. After a warmly welcomed EUR green bond last year, the strong and well oversubscribed book showed that EUR investors are also extremely interested in MuniFin’s longer dated paper”, says Crispijn Kooijmans, Head of Public Sector Bond Origination at Rabobank, who acted as a joint lead manager in the transaction.

Details of the transaction:

Issue Size:                                     EUR 500 million

Payment Date:                            23 January 2018

Maturity Date:                            23 February 2033

Coupon:                                         1.250 % Fixed coupon

Re-offer Price:                            99.905 %

Re-offer Yield:                            1.257 %

Re-offer vs Mid Swaps:           – 4 bps

Lead Managers:                          Barclays, Citi, Rabobank, SG CIB

More information:

Joakim Holmström, Head of Funding

joakim.holmstrom(at)munifin.fi

+358 50 444 3638