The Best Structured Note Issuer is given to a borrower that is active in the Structured Note private placement market offering a full range of not vanilla placements in various currencies through third party dealers. For the third time in a row MuniFin was awarded. MuniFin also won the runner-up as Best Uridashi Issuer.

CMD Portal praised MuniFin for its strong commitment to the structured notes market, transparency, flexibility and adaptivity that are well recognized among market participants. Despite the volatile market conditions last year, MuniFin was able remain agile and meet the needs of the investors.

“We are extremely happy to receive this recognition again from CMD Portal. I believe, in addition to our well-established name and credit rating, the key to our success is our ability to adapt to new market trends and keeping up an active dialogue with our dealers and investors”, says Senior Manager Karoliina Kajova from MuniFin’s Funding and Sustainability team.

Structured notes and private placements in general are a tool for MuniFin to diversify funding sources and broaden its investor base. In 2022, MuniFin issued over EUR 2 billion in private placement and Uridashi format, which is 25% of total new funding.

Read more about the awards (link)

Further information

Karoliina Kajova
Senior Funding Manager, Funding and Sustainability, MuniFin
Tel. +358 50 576 7707

MuniFin will continue to focus on issuing strategic benchmarks in EUR and USD. The plan is to issue approximately 2/3 of the long-term funding through EUR and USD strategic benchmarks and the rest 1/3 through tactical bonds, which include other public markets (e.g., GBP, NOK, AUD) and private placements. Maturity target for the year will be slightly shorter compared to previous years, between 4–5 years.

MuniFin also aims to continue its commitment to issue green and social bonds next year. Sizes will depend on the underlying asset development of the customer financing portfolio.

In 2022, MuniFin has issued EUR 8.8 billion of new long-term funding and the program is nearly completed. This year MuniFin has issued three new benchmark transactions in EUR and USD, together with several EUR taps on the existing lines. Two of the strategic benchmarks were in EUR and one in USD. A new 7-year EUR 500 million green bond was issued in May 2022. In tactical funding, main currencies have been GBP and NOK. Allocation to tactical funding has been higher than planned this year and can be explained by market volatility in strategic markets combined with attractive opportunities in other markets.

The top 4 issuance currencies in 2022 are thus far EUR (39%), GBP (19%), USD (19%) and NOK (17%). These currencies account for 94% of the new funding issued in 2022.

^{Further information}

Antti Kontio

Head of Funding and Sustainability, MuniFin

Tel. +358 500 3700285

On 7 October 2022, the European Commission approved the notification submitted by the Municipal Guarantee Board in cooperation with MuniFin and the Ministry of Economic Affairs and Employment, granting MuniFin license to finance Finnish energy companies owned by municipalities. The arrangement will ensure the continuity of municipal energy companies’ operations and strengthen Finland’s security of supply. This type of financing can only be used towards the collateral requirements in the electricity market. The Commission’s decision will be effective until 31 December 2022.

MuniFin can finance municipal energy companies in relation to collateral requirements only if they have a 100% municipal guarantee, similarly to other companies under municipal control. This requires the municipal council’s decision. 

The Commission’s decision also allows municipalities to finance their energy companies out of their own budget under exceptional terms and conditions. This means that municipalities can now apply for a loan from MuniFin and then loan the funds on to a company, applying the same terms as specified in the Commission’s decision for loans granted directly to energy companies by MuniFin. 

Financing needs are hard to predict 

Anticipating financing needs arising from the collateral requirements in the electricity market is very difficult at the moment. 

“It’s possible that energy companies won’t have much need for MuniFin’s financing after all. But because we don’t know how the electricity market will react when energy consumption soars in the winter months, we encourage municipalities and their energy companies to prepare for possible financing needs in advance”, says Aku Dunderfelt, Head of Customer Finance at MuniFin. 

According to the scheme approved by the European Commission, the maximum loan amount cannot exceed either (i) 15% of the beneficiary’s average total annual turnover over the last three closed accounting periods; or (ii) the liquidity needs derived from the additional collateral requirements for the coming 12 months. The loan has a maximum maturity of three years. 

Under the recently approved scheme, energy companies can use loans granted by MuniFin or the municipality only towards the liquidity needs arising from the increased collateral requirements in the electricity derivatives market. In other words, the financing cannot be directed towards investments in renewable energy or any other purposes. 

See also: 

MuniFin looks to finance municipal energy companies to strengthen the security of supply 

Further information

Antti Kontio

Head of Funding and Sustainability

+358 50 3700 285

On 17 August 2022, MuniFin priced a 5-year USD 1 billion benchmark. The transaction extends MuniFin’s strategic USD curve to August 2027. The previous USD benchmark was issued in August last year. 

Taking advantage of the first viable transaction window after the summer holidays, MuniFin opened the books at 8:15 GMT. Investor engagement was strong from the outset and the books were finally closed at 15:15, in excess of USD 1.15 billion. The transaction pays an annual coupon of 3.25% and a spread of SOFR MS +52bps.  

The final high-quality orderbook had nearly 90% participation from central banks, banks and other official institutions. Geographically, 38% of the investors were from Europe (excluding Nordics), followed by Americas at 32%. Nordics took 17% of the final orderbook.

“This transaction was strategically important to us in terms of extending our existing USD curve. Despite the somewhat challenging market backdrop, we were able to attract very high-quality investors thanks to our strong investor base”, says Manager Miia Palviainen from MuniFin funding team. 

Transaction details 

Comments from the bookrunners

“Congratulations to MuniFin for the successful new 5-year benchmark, taking its place amongst the other leading SSA issuers reopening the USD market in the middle of August. The issuer moved smartly into the recent recovery in demand and confidence in the USD rates market, securing a high quality final orderbook and confirming the continued support of its global investor base.”  

Lee Cumbes, Head of EMEA DCM, Barclays 

“Congratulations to the MuniFin team for their USD 1bn 5Y benchmark which comes after 12 months after their last USD fixed rate outing. The MuniFin team was quick in seizing a late summer issuance window to be an early mover, taking advantage of the lack of supply over the summer weeks and the expected busy USD pipeline ahead.”  

Massimo Antonelli, Managing Director, BMO Capital Markets 

“Citi is delighted to have been part of MuniFin’s first USD benchmark transaction of the year. Despite August traditionally being a quiet month for the SSA market, the MuniFin team has been successful in kick starting its funding program ahead of the Autumn period, taking advantage of the strong USD SSA primary market. Congratulations again to the MuniFin team.”  

Ebba Wexler, Public Sector Origination, Citi 

“Daiwa is delighted to have supported MuniFin in this USD 1bn 5Y benchmark transaction as one of the first issuers in the market post the summer break, and its first venture to the USD market since August 2021. The issuer was able to extend its USD curve by choosing the 5Y tenor, which has been rare outside of tier 1 supranational issuers in recent months.”  

Jez Walsh, Head of Syndicate, Daiwa Capital Markets Europe 

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

Miia Palviainen – Manager, Funding

+358 50 5980 829

Lari Toppinen – Analyst, Funding

+358 50 4079 300

Lari Toppinen is one of four people working with funding in MuniFin. His tasks include issuing benchmarks, private placements, hedging and, dealer and investor relations. During his first weeks he has been involved with several transactions, as the team has already reached 30% of this year’s EUR 9–10 billion long-term funding target.

– I would say it has been an exciting start to the year and I quite enjoy the fast-paced environment. Everyone in the team is extremely professional and helpful and I am impressed how fast our team can adapt to new situations and market conditions. I look forward to collaborating more in the coming months, Toppinen says.

– Lari is a team player with good analytical skills, which are key factors in succeeding in this position. He is a great addition to the team and we all look forward to working together, says Antti Kontio, Head of Funding and Sustainability.

Before joining MuniFin, Toppinen gained experience from capital markets at Danske Bank. Currently, he is finishing his master’s degree at Hanken School of Economics.

Toppinen applied to MuniFin as he was intrigued by the company’s reputation as Finland’s most active bond issuer and pioneer status on sustainable finance. Being able to work in a global business environment is also a huge motivational factor for him.

– I always knew I wanted to work in an international role. I completed my bachelor’s degree at Stockholm University and before that I spent six months in Canada studying sustainable investing. I also studied for a year in Spain when I was younger. I hope the situation will soon allow us to travel and meet our dealer banks and investors in person, Toppinen says.

In his free time, he enjoys a variety of sports such as cross-country and downhill skiing, and golf. He likes to spend time with his friends and family and is a big fan of stand-up comedy.

– Ricky Gervais is probably the world’s greatest comedian. His character in The Office is one of my all-time favourites. A fun fact about me is that I enjoy performing and acting myself whenever there is a chance, Toppinen smiles.

Photo: Sami Lamberg

Text: Jenni Heikkilä

The mandate for the transaction was announced on Monday 17 January and books were opened the following morning. Investors showed strong interest and just after ninety minutes MuniFin tightened the pricing. 

Finally, the books were closed in excess of EUR 2.05 billion. Final spread was set two basis points lower than the initial guidance. The new bond carries a coupon of 0.250%, and was priced at mid-swaps-5bps, equivalent to a spread of +37.7bps over the DBR 0% due February 2032.  

The successful transaction gathered a high-quality and geographically diverse investor base. Banks took the largest share with 35% followed by central banks and official institutions with 31%, asset managers with 23% and insurers and pension funds with the remaining 11%.  

Geographically, the largest share went to Benelux region with 32% followed by Germany, Austria and Switzerland with 22%, France with 17%, Asia with 10%, the Nordics with 9%, The Americas 5%, the UK with 4% and other European accounts with 1%. 

A new member of the MuniFin Funding and Sustainability Team since 10th January, Lari Toppinen, worked closely on the transaction. 

–  We are extremely pleased with the outcome and grateful for the trust placed in us by the investors. As a recent reinforcement of the MuniFin team, working on the deal was exciting and rewarding for me as it was one of my first ones here. I look forward to collaborating more with the team and our bookrunners and investors in the coming months. 

Toppinen is one of four people working with funding in MuniFin. This includes tasks such as issuing benchmarks, private placements, hedging as well as dealer and investor relations. 

This year, MuniFin plans to issue EUR 9-10 billion of new long-term funding. After this benchmark MuniFin has reached almost 30% of the target. Since the start of the year, MuniFin has already issued several NOK denominated bonds, a new Sterling line maturing in June 2025 as well as a handful of private placements. 

Comments from the dealer banks 

–  A fantastic way for MuniFin to start its euro benchmark funding this year. In a busy market, MuniFin demonstrated its broad investor appeal with a high quality, and geographically diverse final orderbook which closed twice oversubscribed. Congratulations to the MuniFin team! Citi is delighted to have been bookrunner on this successful transaction. 

Ebba Wexler, Managing Director, Public Sector DCM, Citi 

–  MuniFin continues their strong start to 2022 with their first EUR benchmark of the year. Final pricing through Fair value in an extremely competitive market, is a clear testament to the strength of the credit and excellent support that MuniFin enjoys from a well-diversified and high-quality investor community. Danske Bank is delighted to have been part of this successful transaction and proud to support MuniFin in reaching their funding target of EUR 9-10bn for 2022. 

Axel Zetterblom, SSA Origination, Danske Bank 

–  A fantastic outcome for MuniFin’s first Euro benchmark of the 2022 calendar year. The transaction was met with strong investor interest from a diverse range of high-quality accounts, and the two times oversubscribed orderbook highlights the strength of the issuer’s credit quality. Deutsche Bank is delighted to be part of this transaction. 

Achim Linsenmaier, Global Head of Public Sector Origination DCM, Deutsche Bank 

–  Congratulations to MuniFin on a phenomenal transaction to kick off their EUR benchmark funding for 2022. A combination of immensely loyal investors and fantastic execution judgement from the MuniFin team provided an amazing result in what was a busy EUR market. 

Laura Quinn, Managing Director, Head of Primary Markets, TD Securities 

Further information

Joakim Holmström
Executive Vice President, Capital Markets and Sustainability, MuniFin
Tel. +358 50 4443 638

Antti Kontio
Head of Funding and Sustainability, MuniFin
Tel. +358 500 3700285

The transaction was announced to the market on Wednesday, January 12. The books were opened with price guidance at UKT 06/25 +39bps area. Investor demand was strong and just an hour after opening the books the spread was tightened. The orderbook was finally closed in excess of GBP 430 million.  

This fixed-rate benchmark pays a coupon of 1.125% (annual) and a spread of 38bps over the UKT 0.625% June 2025 reference Gilt. HSBC, NatWest and RBC acted as dealers. 

Central banks and official institutions took 38%, followed by banks at 29% and Fund Managers at 25%. In terms of geography, distribution was concentrated in the UK at 54% and Asia in the second place with 33%. 

– We have established a solid reputation in the Sterling market, and it is shown by the high-quality orderbook, says Manager Miia Palviainen from MuniFin Funding and Sustainability team. 

Transaction details 

Comments from the Bookrunners 

–  Congratulations to the MuniFin team on their excellent first GBP syndication of 2022. They achieved a truly exceptional result, attracting large and diverse investor interest which allowed the deal to be priced with a minimal new issue concession. Going forward, this transaction will establish a valuable new reference point for GBP investors. HSBC was proud to be involved in the transaction. 

Sabrina Khalfoune, HSBC SSA DCM  

–  Munifin were quick to capitalise on the strong Sterling backdrop and entered the market with their first syndicated trade of 2022 becoming the first Nordic agency to enter the Sterling market. This reconfirms their commitment to the currency following a record amount of sterling issuance in 2021 (~15% of funding programme). The high quality and oversubscribed book represents the broad credit appeal of the MuniFin name and we are very pleased to have been involved at NatWest. 

 Kerr Finlayson, Managing Director, NatWest  

–  A fantastic transaction for MuniFin, reacting swiftly to the favourable market conditions and securing their window to price one of the issuer’s most successful outings in the Sterling market. Attracting MuniFin’s largest orderbook in the currency in almost a decade with participation from a broad range of investors is a real testament to the growing presence MuniFin have established in this market in recent years. A really great outcome and RBC was delighted to have been involved.”  

Andrea Jelic, Director, RBC Capital Markets. 

Further information

Antti Kontio
Head of Funding and Sustainability, MuniFin
Tel. +358 500 3700285

On Tuesday 4 January, MuniFin issued a NOK 2.5 billion bond maturing 11 January 2027. The transaction quickly gathered a vast number of investors. On Friday 7 January and Monday 10 January, respectively, MuniFin decided to issue a NOK 1 billion tap and a NOK 1.5 billion tap to the line, which brings the total amount to NOK 5 billion. Danske Bank acted as the dealer for the first transaction as well as the two taps to the line. On Friday 7 January, MuniFin was also active in the NOK market with a NOK 500 million tap of a line originally issued in January 2021 that matures in January 2026. The dealer on this tap was DNB Bank.

With the first trade on Tuesday 4 January, MuniFin was also the first SSA issuer in the NOK market this year.

– The Norwegian market has always played a significant role for us and will remain to do so. Last year a total of 5% of all long-term funding was issued in NOK, which made it the 5th largest currency, says Manager Miia Palviainen from MuniFin’s Funding and Sustainability team.

In 2022, MuniFin forecasts to issue EUR 9-10 billion of long-term funding.

– This was an excellent start for our funding year, says Palviainen.

More information

Miia Palviainen

Manager, Funding and Sustainability, MuniFin

+358 50 598 0829