Taking advantage of the supply void followed by the latest central banks meetings, MuniFin priced a GBP 250 million fixed-rate benchmark due 22 July 2027. The books were opened 10 am London time on Wednesday morning with initial guidance released at UKT+60bps area, equivalent to SONIA +19bps.  

Investor demand was strong from the outset and the books closed in just couple of hours in excess of GBP 280 million. The transaction pays an annual coupon of 5.125% and a spread of +60bps over the 1.250% UKT due July 2027. 

“The Sterling market is an important funding market for us, so it was great to return after a little break. We are grateful for the support from our investors”, says Karoliina Kajova, Senior Manager at MuniFin. 

“Huge congratulations to the MuniFin team for a highly successful return to the GBP market. MuniFin was quick to capitalise on the constructive market backdrop, allowing them to extend their benchmark GBP curve at a competitive cost”, says Alex Paterson, Head of SSA DCM at Barclays. 

Barclays acted as the bookrunner on the transaction, together with Citi and Bank of America. 

The orderbook was of the highest quality as 50% was allocated to banks and 44% to central banks and other official institutions. Rest of the orderbook went to Fund Managers (4%) and insurance and pension funds (2%). Geographically, the bonds were distributed to investors from the UK (57%), followed by Asia and Middle East (42%) and France (4%). 

“Achieving such a high-quality, oversubscribed orderbook whilst re-opening the GBP SSA market in the second week of August is testament to the depth of MuniFin’s following from its global investor base. Barclays is delighted to have been able to support this transaction”, Paterson continues. 

With this transaction, MuniFin has completed over EUR 7.5 billion of its EUR 9-10 billion long-term funding target for the year.

Read the press release:

Transaction details 

Issuer:	Municipality Finance Plc (“MuniFin”)
Ratings:	Aa1 / AA+ (both Stable) by Moody’s / S&P
Format:	Senior, Unsecured, Reg S, Registered
Size:	GBP 250 million
Pricing Date:	9th August 2023
Settlement Date:	16th August 2023
Maturity Date:	22nd July 2027
Coupon:	5.125%, Fixed, Annual, ACT/ACT
Reoffer Spread:	UKT 1 ¼ 07/22/27 (Mid) + 60 bps
Joint Bookrunners:	Barclays / BofA / Citi

Comments from the bookrunners 

“Congratulations to the MuniFin team for a hugely successful return to the sterling market. This transaction strategically extends the MuniFin sterling curve and captured focus during a quieter period for the SSA sector. Investors also appreciated high quality issuance in an under-supplied tenor thus far in 2023.” 

Robert Matthews, SSA DCM, Bank of America 

“Congratulations to the MuniFin funding team for their first new Sterling benchmark since January 2022!  Although August is typically a quieter month in primary markets, the MuniFin team took advantage of a stable and constructive market backdrop to price a successful £250 million transaction, which was well supported by high quality accounts.  Citi is delighted to have worked with MuniFin on this deal which re-affirms their commitment to the Sterling SSA market.” 

Ebba Wexler, Head of SSA DCM, Citi 

Further information 

Joakim Holmström – Executive Vice President, Capital Markets and Sustainability 

+358 50 4443 638 

Antti Kontio – Head of Funding and Sustainability 

+358 50 3700 285 

Karoliina Kajova – Senior Manager, Funding 

+358 50 5767 707 

Lari Toppinen – Senior Analyst, Funding 

+358 50 4079 300 

Aaro Koski – Analyst, Funding 

+358 45 1387 465 

After the encouraging results of the comeback to the Swiss bond market in May, MuniFin priced another CHF 100 million bond on 24 July. All 18 accounts that took part in the orderbook were Swiss investors. The 3-year bond pays an annual coupon of 1.6 % and  Zürcher Kantonalbank acted as the sole manager for the deal. 

“Despite a calm market due to summer holidays in Switzerland, MuniFin could access the short end of the market, which was favored by investors in light of the inverted swap curve. This marks the issuer’s second CHF trade in short sequence – proof that it is a very well known and liked name for Swiss investors”, says DCM Specialist Benjamin Heck from Zürcher Kantonalbank.

With this transaction, MuniFin has completed over EUR 7.3 billion of its EUR 9-10 billion long-term funding target for the year.

Transaction details

Issuer	Municipality Finance Plc
Issuer Ratings	S&P: AA+ (stable) / Moody’s: Aa1 (stable)
Amount	CHF 100’000’000
Tenor	3 years
Coupon	1.6000 % Fixed, Annual, (30/360)
Reoffer price	100.015 %
Trade date	24.7.2023
Payment date	4.8.2023
Maturity date	4.8.2026
Lead Manager	Zürcher Kantonalbank
Listing	SIX Swiss Exchange
ISIN	CH1266847230

Read more

MuniFin returns to the Swiss bond market

Further information 

Joakim Holmström – Executive Vice President, Capital Markets and Sustainability 

+358 50 4443 638  

Antti Kontio – Head of Funding and Sustainability 

+358 50 3700 285 

Karoliina Kajova – Senior Manager, Funding 

+358 50 5767 707 

Lari Toppinen – Analyst, Funding 

+358 50 4079 300 

Aaro Koski – Analyst, Funding

+358 45 138 7465

Yesterday, MuniFin issued its first USD benchmark of the year. The USD 1 billion benchmark is due 15 December 2027 and pays a semi-annual coupon of 4.125%. In time of pricing, the spread was set at SOFR MS +45bps.

“We were anticipating a high USD SSA supply due to the central bank meetings next week, so we decided to announce the mandate early on Monday morning to secure a favourable issuance window. This paid off: the books opened on Tuesday morning with quality indications of interest already covering the whole trade”, says Analyst Lari Toppinen from MuniFin Funding team.

Later that afternoon, MuniFin was able to close the books in excess of USD 2.6 billion with a very high-quality orderbook. Central banks and other official institutions took 70.6% of the bonds, followed by banks at 25.6%. Asset Managers took 3.6% and the rest went to corporates. 

“This is a stellar result and a demonstration of our solid investor engagement. We couldn’t be happier”, Toppinen continues. 

Geographically, most of the investors came from Europe (excluding Nordics), followed by Americas at 27.6%, Asia Pacific at 19%, Africa and Middle East at 15% and Nordics at 7%. 

With this transaction, MuniFin has completed over two thirds of its long-term funding target for 2023. 

Transaction details

Issuer:	Municipality Finance Plc (“MuniFin”)
Ratings:	Aa1 / AA+ (both Stable) by Moody’s / S&P
Format:	RegS/144A
Size:	USD 1 billion
Pricing Date:	6th June 2023
Payment Date:	13th June 2023
Maturity Date:	15th December 2027
Coupon:	4.125%, Fixed, semi-annual, 30/360
Reoffer Spread:	SOFR MS + 45 bps | CT5 + 28.3bps
Joint Bookrunners:	Barclays / BMO / Daiwa / Nomura

Comments from the Bookrunners

“Congratulations to the MuniFin team for an outstanding outcome for its first USD benchmark transaction in 2023, a highly successful new short 5-year. Following the volatility connected to the US Debt Ceiling topic, MuniFin was quick to seize a stable execution window, and despite a wave of USD issuance from SSA peers, generated a well-diversified final orderbook that was more than 2.5x oversubscribed. Furthermore, MuniFin was able to achieve 2bps of tightening to price with minimal new issue concession, which acts as a testament to MuniFin’s strong following from its global investor base. Barclays is honoured to have supported this transaction.” Alex Paterson, Head of SSA DCM, Barclays

“Congratulations to the MuniFin team for a very successful USD outing in what has been a very busy primary market following the resolution of the US Debt Ceiling over the w-end. The transaction was largely oversubscribed and pricing was flat to fair value. Around 70 investors participated in the transaction which is testament to the strong sponsorship that MuniFin enjoys in the USD market.” Massimo Antonelli, Managing Director, BMO Capital Markets

“Congratulations to the MuniFin team on an outstanding result. The issuer successfully navigated a busy primary USD SSA market as well as an adverse movement in swap spreads, whilst extending their USD Benchmark curve to a new December 2027 maturity. The quality and level of demand fully warranted a 2bps price tightening and is further testament to the high regard in which MuniFin is held.” – Jez Walsh, Head of Syndicate, Daiwa Capital Markets Europe

“It has been almost a year since Municipality Finance last issued a USD benchmark outing and they did not disappoint! The new Dec-2027 at more than 2.5x over subscribed, is a testament to the credits recognition, global appeal and haven status. With a granular orderbook and diversification across both geography and investor type, it reiterates the persistent investor work undergone by the whole Funding Team, in positioning Municipality Finance as top tier name. Congratulations!” – Mark Yeomans, Managing Director, Public Sector DCM, Nomura.

Further information

Joakim Holmström – Executive Vice President, Capital Markets and Sustainability 

+358 50 4443 638  

Antti Kontio – Head of Funding and Sustainability 

+358 50 3700 285 

Karoliina Kajova – Senior Manager, Funding 

+358 50 5767 707 

Lari Toppinen – Analyst, Funding 

+358 50 4079 300 

Aaro Koski – Analyst, Funding

+358 45 138 7465

Last week, MuniFin decided to return to the CHF market by issuing its first CHF bond since 2017. The latest tap was made in 2020. The new 5-year fixed-rate bond pays an annual coupon of 1.6250%.

”Congratulations to the MuniFin team on successfully launching their first new CHF line since 2017. Seizing the right window allowed MuniFin to take advantage of favorable market conditions to raise a new CHF 150 million 5y line at SARON MS-16bps, the tightest level achieved by a foreign issuers YTD in 5y”, said Lead Manager Salma Guerich, DCM SSA from BNP Paribas (Suisse).

MuniFin has a long history issuing in the Swiss market and now it was a good time for a comeback.

“Both pricing and investor demand lined up so that we were able to return to the market again after a pause. We are grateful for the trust our investors place in us”, says Senior Manager Karoliina Kajova from MuniFin’s Funding and Sustainability team.

The order book was made up of Swiss investors. The largest share (50%) went to banks, followed by Asset Managers (34%) and insurance and pension funds (15%). The rest (1%) went to central banks and other official institutions.

”The success of this transaction is a strong testimony to MuniFin’s diverse Swiss investor following which was also affirmed in the tap done in 2020”, Guerich continued.

With this transaction, MuniFin has completed over 60% of its long-term funding target for the year.

Transaction details

Issuer:	Municipality Finance PLC (Kuntarahoitus Oyj) (BBG Ticker: KUNTA)
Issuer ratings:	Aa1 (stable) / AA+ (stable) (M/S)
Issue size:	CHF 150m
Life:	5yr
Trade date:	17 May 2023
Payment date:	16 June.2023
Maturity date:	16 June2028
Coupon:	1.6250% Fixed, Annual, (30/360)
Spread / Yield:	SARON MS-16bps / YTM 1.5575%
Issue price:	100.322 %
Documentation:	Off the Issuer’s EUR 45bn EMTN Programme
Listing:	SIX Swiss Exchange
ISIN:	CH1244321779
Lead Manager:	BNP Paribas (Suisse) SA

Further information 

Joakim Holmström – Executive Vice President, Capital Markets and Sustainability 

+358 50 4443 638  

Antti Kontio – Head of Funding and Sustainability 

+358 50 3700 285 

Karoliina Kajova – Senior Manager, Funding 

+358 50 5767 707 

Lari Toppinen – Analyst, Funding 

+358 50 4079 300 

Aaro Koski – Analyst, Funding

+358 45 138 7465

The mandate for the EUR 1 billion transaction was announced on Tuesday 18 February and the books opened the following morning with initial price guidance at midswaps+5bps area. In just two hours, the orderbook stood at EUR 1.05 billion and price guidance remained unchanged.  

Finally, the orderbook was closed in excess of 1.8 billion. The new bond carries a coupon of 3.125%, and was priced at mid-swaps+5bps, equivalent to a spread of +71.8bps over the DBR 0% due 15th February 2030. 

“Due to the uncertain market situation lately, many SSA issuers have postponed their transactions resulting in busy primary markets. Despite the heavy supply, we were able to find a favourable window and were satisfied with the outcome. It was also nice to add a new liquid pricing point into our EUR curve”, says Antti Kontio, Head of Funding and Sustainability at MuniFin. 

The final orderbook was of very high quality as banks took the bulk (56%), followed by central banks and official institutions (36%,) Asset Managers (7%) and pension funds and insurers (1%). 

Geographically, the transaction attracted a diverse group of investors: Germany, Austria and Switzerland took the largest share (28%), followed by Asia (20%) and UK (19%), Benelux (12%), the Nordics (9%), France (7%) and the rest of the world (5%). 

With this transaction, MuniFin has completed nearly 60% of its long-term funding target for the year.

Read the press release:

Transaction details 

Issuer	Municipality Finance Plc (“MuniFin”)
Issue Amount	EUR 1 billion
Issuer Rating	Aa1 /AA+ (Moody’s / S&P) (all stable)
Pricing Date	19 April 2023
Settlement Date	26 April 2023 (T+5)
Maturity Date	29 July 2030
Re-offer Price /Yield	99.722% / 3.170%
Annual Coupon	3.125% (short first coupon)
Re-offer Spread	Mid-swaps +5bps
Spread vs Benchmark	DBR 0% Due 15th February 2030 +71.8bps
Listing	Nasdaq Helsinki Stock Exchange (Regulated market)
Documentation	Issuer’s Debt Issuance Programme
ISIN	XS2615680399
Joint Lead Managers	Citi, Deutsche Bank, Goldman Sachs, JP Morgan

Comments from Joint Lead Managers 

 “Many congratulations to the MuniFin team on such a successful outcome for their third euro transaction of their 2023 funding program. Despite a volatile rates backdrop, MuniFin were able to price their longest euro benchmark of the year on the back of an extremely high quality and oversubscribed order book. Citi is delighted to have been involved!” 

Ebba Wexler, Managing Director, Public Sector DCM, Citi 

 “Congratulations to the MuniFin team on their third EUR benchmark outing of 2023. The new EUR 1bn long 7-year benchmark garnered a quality orderbook amidst a busy primary market for SSA issuers. MuniFin’s agility in adapting to market windows once again enabled them to achieve attractive cost of funding for their activities which support the mission of building a better and more sustainable future for its clients. Deutsche Bank is pleased to have been involved in this transaction.” 

Katrin Wehle, Managing Director, Head of SSA DCM Origination, Deutsche Bank 

 “Many congratulations to the MuniFin team on successfully accessing the EUR market for the third time in a row this year. A strong return to the market following a period of broader volatility, capturing interest from a wide range of good quality investors while achieving the price and volume targets. The Goldman Sachs team was extremely delighted to be part of this transaction.” 

Edward Markham, Managing Director, Goldman Sachs 

” Congratulations to the MuniFin team on printing a solid €1bn transaction in 7-year part of the curve, being the first Nordic agency to access the tenor this year. The orderbook size of €1.8bn+ is a testament to investor confidence in MuniFin’s name, as it stands as the issuer’s largest EUR 7-year orderbook to date. We are delighted to be involved in this landmark transaction.”

Matthieu Batard, Head of SSA Syndicate, J.P. Morgan 

Further information  

Joakim Holmström – Executive Vice President, Capital Markets and Sustainability  

+358 50 4443 638   

Antti Kontio – Head of Funding and Sustainability  

+358 50 3700 285  

Karoliina Kajova – Senior Manager, Funding  

+358 50 5767 707  

Lari Toppinen – Analyst, Funding  

+358 50 4079 300  

Aaro Koski – Analyst, Funding 

+358 45 138 7465 

The awarded EUR 1 billion green bond is the largest EUR green bond issued by MuniFin and the largest EUR green bond of all time in the Nordic SSA market. The transaction received a strong reception with final order books over 2-times oversubscribed. The bond was MuniFin’s inaugural transaction under its updated Green Bond Framework, dated August 2022.

CMD awarded its TopDeal accolade to MuniFin’s issuance due to its record-breaking size, strong investor demand, and the issuer’s unwavering commitment to sustainability.  The bond issuance highlights MuniFin’s ability to tap into the growing interest in ESG investments and its dedication to financing projects that benefit the environment and society, CMD Portal states in its release.

“We are extremely happy to receive this recognition from CMD Portal and of course happy with the outcome of the green bond issuance. It is encouraging to see how the demand for sustainable bonds keeps on growing”, says Antti Kontio, Head of Funding and Sustainabilityat MuniFin.

A TopDeal is awarded to a deal that stands out by achieving excellent execution or one that pushes the boundaries of debt capital markets by being a first or reopening a market. At the end of each quarter CMD Portal awards six deals with the TopDeal accolade.

Read more

MuniFin issues a record-breaking EUR 1 billion green bond

Further information

Joakim Holmström – Executive Vice President, Capital Markets and Sustainability 

+358 50 4443 638  

Antti Kontio – Head of Funding and Sustainability 

+358 50 3700 285 

Karoliina Kajova – Senior Manager, Funding 

+358 50 5767 707 

Lari Toppinen – Analyst, Funding 

+358 50 4079 300 

Aaro Koski – Analyst, Funding

+358 45 138 7465

Watch the video:

The mandate for the new benchmark was announced on Tuesday 10 January. MuniFin received encouraging feedback from the market and decided to open books on Wednesday morning at mid-swaps+2bps area. The demand was strong from the outset and MuniFin was able to tighten the spread by 2bps. In just two hours, the books were closed in excess of EUR 3.6 billion. 

The transaction carries an annual coupon of 2.875% and was priced at mid-swaps +0bps, equivalent to a spread of 61.9bps over the OBL 1.3% due October 2027 at the time of pricing. 

The orderbook was of very high quality as nearly 60% of allocations went to banks, followed by central banks and official institutions (26%), Asset Managers (11%) and insurance and pension funds (3%). The allocations were also geographically diverse: Germany, Austria and Switzerland took 31% of the orderbook, followed by Nordics (24%), Benelux (14%), France (12%), UK (9%), rest of the world (5%), Other Europe (3%) and Asia (2%). 

“This benchmark was a great kick-start for our funding year, and we are extremely happy with the outcome. Our transaction was quickly over twice oversubscribed despite the busy start-of-the-year timing and the uncertain atmosphere at the market, which highlights the great trust placed on us by the global investor community”, says Antti Kontio, Head of Funding and Sustainability. 

This year, MuniFin plans to issue EUR 8-9 billion of long-term funding, which is in line with the new issuance volumes in 2022. 

Transaction details 

Issue Amount	EUR 1.5 billion
Pricing Date	11 January 2023
Payment Date	18 January 2028 (T+5)
Maturity Date	18 January 2028
Re-offer Price / Yield	99.949% / 2.886%
Annual Coupon	2.875%, Annual, ACT/ACT ICMA
Re-offer Spread	MS +0bps OBL 1.3% due October + 61.9bps
Format	Senior, Unsecured, Reg S
Listing	Helsinki Stock Exchange (Regulated market)
ISIN	XS2577104321
Joint Lead Managers	BofA / JP Morgan / Morgan Stanley / Nordea

Comments from the bookrunners 

“Huge congratulations to the MuniFin team for navigating a busy January window and successfully printing their joint largest ever transaction. This transaction provides an excellent starting point for the year ahead and highlights the value investors place on MuniFin’s core currency offerings.” 

Adrien de Naurois, Managing Director, Head of DCM SSA & EMEA IG Syndicate, BofA Securities 

 “Congratulations to the MuniFin team for their stellar first benchmark issuance of 2023, successfully navigating a busy market. The high quality order book and their largest EUR benchmark since 2020 sets the scene for other Nordic issuers to follow. We are delighted to be involved in this landmark transaction.” 

Matthieu Batard, Head of SSA Syndicate, J.P. Morgan  

“A successful return to the EUR market for MuniFin with their first benchmark issuance of 2023. Despite competing supply, the deal amassed a high-quality and granular orderbook, which saw the trade tighten 2bps from initial guidance, further highlighting the strength of MuniFin’s credit quality. Congratulations to the MuniFin team on a stellar start to the year, Morgan Stanley is delighted to have been involved!” 

Ben Adubi, Head of SSA Syndicate, Morgan Stanley 

“Nordea is delighted to have played a role in MuniFin’s first EUR benchmark transaction of the year. Despite a notably congested start to the EUR primary market in January and going head-to-head with directly competing supply, MuniFin emerged with a very successful EUR 1.5bn 5-year benchmark with over twice as much final investor demand behind, while simultaneously tightening the spread by 2bps. Nordea congratulates the entire MuniFin team for kicking off 2023 with a stellar performance that highlights the strong support for its name amongst the global investor community.” 

Kamal Grossard-Amin, Managing Director, Head of SSA DCM, Nordea 

Further information 

Joakim Holmström – Executive Vice President, Capital Markets and Sustainability

+358 50 4443 638  

Antti Kontio – Head of Funding and Sustainability

+358 50 3700 285 

Karoliina Kajova – Senior Manager, Funding

+358 50 5767 707 

Lari Toppinen – Analyst, Funding

+358 50 4079 300

Read more 

MuniFin funding forecast for 2023: EUR 8-9 billion