MuniFin’s green bond premiere in the Sterling market attracted ESG investors

Taking advantage of the constructive market tone, MuniFin announced the transaction on Tuesday 26 October at 9:10 London time. The books opened with price guidance at UKT 09/24 +30bps area. The size was fixed from the outset at GBP 250 million. The orderbook grew steadily and was finally closed in excess of GBP 300 million at 12:15.

Central banks and official institutions took 44% of the orderbook, with Asset Managers as a close second with 42.9% participation. Geographically, European investors took 54.2%, excluding the Nordics. Asia Pacific took 34% and Africa and the Middle East 10%.

– We are excited to have issued our inaugural green bond in the GBP market and to have been able to offer the green bond product to the Sterling market. It was great to add a fourth currency to our green bond offering and to further diversify our green bond investor base. We are humbled by the vote of confidence from our investors and we couldn’t be happier, says Karoliina Kajova, Senior Manager at Funding and Sustainability at MuniFin.

MuniFin has previously issued EUR and USD green bonds in the public market and one private placement in AUD. The first green bond was issued in 2016. With this transaction MuniFin is close to completing its funding target for the year.

Read more about the transaction:

Transaction details

Issuer:Municipality Finance Plc (“Munifin”)
Ratings:Aa1 / AA+ (both Stable) by Moody’s / S&P
Size:GBP 250,000,000
Coupon:0.875% annual, Actual/Actual (ICMA), following unadjusted
Pricing Date:26th October 2021
Payment Date:02nd November 2021
Maturity Date:16th December 2024
Benchmark:UKT 2 ¾ 09/07/24
Benchmark Spread:+30bps
Joint Bookrunners:BofA Securities, Nomura, TD Securities

Comments from the bookrunners

Huge congratulations to the Municipality Finance team for navigating the volatile backdrop and printing a hugely successful, second GBP transaction of 2021. Excellent to see the issuer benefiting from the growing demand for ESG assets in GBP and adding a fourth currency to their Green bond offerings. The orderbook is testament to the strong following MuniFin has gathered amongst the UK investor base, as well as the broader global central bank community.

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

“Nomura was delighted to support Municipality Finance’s inaugural Green outing in the Sterling market – a resounding success, broadening MuniFins’s ESG investor universe and reinforcing the sustainability commitment of the organisation.”

Mark Yeomans, Managing Director, SSA Debt Capital Markets, Nomura

“Congratulations to the MuniFin team on a fantastic inaugural GBP Green transaction. There was notable participation from dedicated green investors in this trade; a clear vote of confidence from the market in MuniFin’s credentials in the ESG space. This transaction has added a fourth currency to MuniFin’s green offerings and helps further expand their green investor base.”

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

Further information

Joakim Holmström

Executive Vice President, Capital Markets and Sustainability, MuniFin

+358 50 4443 638

Antti Kontio

Head of Funding and Sustainability, MuniFin

+358 50 3700 285

Karoliina Kajova

Senior Manager, Funding and Sustainability, MuniFin

+358 50 5767 707

Farewell to peat – Seinäjoen Energia on the fast track to carbon neutrality

The city had been deliberating on different power plant solutions for a long time. The city’s district heating was dependent on a single power plant and peat as fuel. Peat has become more and more expensive, which has caused upward pressure on the prices of district heating. This made it necessary to look into new alternatives.

Different kinds of waste incinerators and bigger power plant solutions were compared. In 2018, the decision was made to decentralise production to several smaller facilities instead of one large facility. A biofuel plant that will produce heat for half the city will begin its trial runs in autumn 2022. The plant was funded with MuniFin’s green finance.

“We decided not to put all our eggs in one basket. The new facility will secure the reliable production of renewable energy but will also leave room for other solutions”, says Mikko Mursula, head of district heating unit at Seinäjoen Energia.

The company updated its strategy a year after deciding on the decentralisation of production. This included setting the strategic goal of carbon neutrality by 2030.

“Until then, we did not have any concrete steps laid out ahead besides the new Kapernaum heat plant, nor did we have a clear timetable for the reduction of peat use”, Mursula says.

The fuel used in the new Kapernaum heat plant comes from different kinds of sawmill and forest felling by-products such as tree bark, sawdust and forest chips. What sets the plant aside from the rest is that it can utilise even very moist wood – the wood that is burned can have a moisture content of up to 65 per cent. There is no need to dry out the wood in piles when even freshly felled wood burns efficiently in the incinerators of the facility. The heat from flue gases is also recovered.

“While it’s not a new innovation in the industry, we are implementing flue gas heat recovery for the first time. Using modern technology, our plant now puts out 40-degree flue gas instead of the previous 150 degrees.”

An investment of more than EUR 30 million, the boiler project also includes the already completed fuel reception and processing systems. It also serves the old peat boiler.

“The new logistics already began to generate savings last summer when we started burning wood instead of peat in the old boiler.”

Heat pumps in a key role

The new heat boiler is not the only thing moving Seinäjoen Energia closer to carbon neutrality. A new auxiliary plant in Hanneksenrinne which uses pellets instead of oil was completed in 2020. In the near future, total investments will reach about EUR 60 million. It is estimated that carbon dioxide emissions will drop from the nearly 660,000 tonnes in 2018 to below 14,000 tonnes by 2023. For customers, the investments mean steadily priced and clean renewable energy.

“We have mapped out the options and aim to increase everything else except combustion-based production. Even CO2-free combustion may be unacceptable in energy production in the future”, Mursula ponders.

A new data centre being built in Seinäjoki will produce about 10 per cent of the city’s district heat supply. This is roughly equivalent to the annual demand of all the city’s single-family houses. If all goes as planned, the data centre can eventually produce heat for one third of Seinäjoki. Seinäjoen Energia has been involved in the project over the last few years.

“The data centre is designed to operate on renewable power. The heat of the data centre is recovered with heat pumps and transferred to the district heating water. Green electricity in, green heat out”, Mursula describes.

Heat pumps have an even bigger role in Seinäjoen Energia’s work towards carbon neutrality. Heat recovery and the more extensive utilisation of waste heat are being canvassed. Wastewater heat recovery could provide as much as 10 per cent of the city’s energy demand in the future. A project by EPV Energy involving the construction of a new district heating battery and electric boiler in connection to the Seinäjoki power plant is due for completion in 2022. EPV also provides wind energy for Seinäjoen Energia.

“The energy sector and the electricity market are undergoing quite an upheaval. Wind energy production is growing. Sometimes there is an oversupply of electricity, sometimes the supply does not meet the demand. On freezing winter days, the energy demand in Seinäjoki can double. The district heating battery enables us to store energy when there is excess supply”, Mursula explains.

The Government’s aid and taxation policy encourages businesses to make the green transition and heat pump investments.

“There has been uncertainty regarding the viability of heat pump investments. Investment aid speeds up investments and reduces the related risks. At the moment, investments are very profitable also due to the low interest rates”, Mursula adds.

Text: Hannele Borra

Photos: Seinäjoen Energia

New heart of Valkeala

Kouvolan kaupungin suunnittelupäällikkö Risto Mikkola kuvattuna vaaleaa taustaa vasten.
According to Risto Mikkola, quality and environmentally friendly solutions were emphasised in the tendering phase.

“Eagerly anticipated”, sums up Risto Mikkola, planning manager at the City of Kouvola, describing the new community centre in the urban area of Valkeala, whose construction is set to begin in late summer. The comment is apt, considering that the project began in 2017, but had to be put on hold due to a school network reform in 2018.

The restructuring of the school network cut the number of schools in the area from 34 to 20. The old village schools are making room for new multi-purpose buildings that will also host day-care services, youth services, hobby clubs and local associations. The Valkeala community centre will be the first of these modern buildings.

“The building will rise on the main street, at the site of Valkeala’s old town hall. The community centre will become Valkeala’s new heart in many ways”, Mikkola predicts.

After the school network reform was settled, the work on the community centre has progressed on time – although without any visible construction, the design phase may have appeared slow to the local residents.

“Lots of work has been done, but so far there are no physical results to show for it. Now that we are about to enter the construction phase, the project will start feeling more tangible for the residents, too”, says Hellevi Kunnas, director of finance at the City of Kouvola.

In this project, the contractor is YIT Group. The contracts will be signed on 4 June, and the groundwork is set to begin late this summer.

High praise from the Green Evaluation Team

The Valkeala community centre is funded with MuniFin’s green finance, and the project scored the highest ever points from the MuniFin Green Evaluation Team in the suistainable buildings category. Risto Mikkola confirms that there were no special tricks involved: the high score was the result of determined and systematic work.

“In the tendering phase, we emphasised quality and environmentally friendly solutions, which worked out well. We’re very happy and also a little surprised to have scored this well”, Mikkola notes happily.

MuniFin’s Green Evaluation Team praised the community centre project for its material choices, energy efficiency, renewable energy sources, high utilisation rate of services, and the exemplary treatment of stormwater. The building will mainly use district heating, which is produced locally in Kouvola with exceptionally low emissions.

Green values played an important role not just in the building’s environmental impact, but also in its design. In the tendering process, the city set clear criteria for the role nature should play at the community centre. For example, all plans included the possibility of backyard farming.

“Children should have a chance to dig their hands in the dirt, if only for health reasons. This has been one of our goals right from the start”, Mikkola emphasises.

Breathing new life into the old population centre

Kouvolan kaupungin talousjohtaja Hellevi Kunnas kuvattuna vaaleaa taustaa vasten.
The community centre is by far the largest project the City of Kouvola has funded with lease financing, says Hellevi Kunnas.

The Valkeala community centre is by far the largest project the City of Kouvola has funded with lease financing and the first so called lifecycle project. The city has traditionally used its own funding and maintenance, but now wanted to try something new.

“We wanted to explore new alternatives because there are so many options available today. We have built some day‑care centres with lease financing before, and now we’ll get to test the lifecycle model in practice. It’s important not to get stuck doing things the same way”, explains Kunnas, the City of Kouvola director of finance.

Experience was also sought from outside the city, for example from the Heinsuo school in Hollola, where the lifecycle model has already proved successful. Another reference project is the Mansikkala school in Imatra, which is currently under construction. The purpose of visiting these schools with teachers was not only to learn about the lifecycle model, but also to hear opinions on what a modern learning environment should look like. After all, multi-purpose facilities are not without their challenges.

“When the curriculum was reformed in 2016, it swinged rather heavily in the direction of an open model. Soon after, it became clear that there cannot be too many groups working in the same space without the groups disturbing each other. Now we have taken a step back and combined the more separate and more open approaches”, Mikkola says.

The city and the service providers are currently drawing the big design lines for the community centre together with the teachers. Mikkola praises the lifecycle partner YIT for their model of participatory design.

“In May, before the summer holidays, we will make the major decisions that affect the building’s shape and yard functions. In the autumn, we will continue with details like the shelves and cabinets. YIT has provided a really good framework for this process.”

A small section of the old high school will be demolished in the summer to make room for the new 10,000-square-metre multi-purpose building. Excavation and piling work will begin towards the end of the summer, and foundations will be cast in the autumn.

The Valkeala community centre will kick off a series of large school projects in Kouvola. The next multi-purpose buildings are planned in Inkeroinen, with renovations planned for Kuusankoski and the Kouvola city centre as well. For local people, the school projects instil confidence in the vitality of their home region.

“Residents have had serious concerns about the future of this area. The community centre is an indication that we will continue to invest in Valkeala. The old town is gaining new vitality”, Kunnas summarises.

Written by Roope Huotari

Picture by YIT Oyj & Linja Arkkitehdit Oy

Photos by interviewees

Green finance for green pioneers

Since 2016, MuniFin has offered green finance to selected projects that promote the transition to low-carbon and climate resilient growth. Green projects are financed at a discount based on their estimated environmental benefits. Today, MuniFin’s green finance covers over 200 projects across Finland – from the capital of Helsinki to Inari in Northern Lapland.

Green projects range from sustainable buildings to sustainable public transportation, from waste to environmental management. They are selected using MuniFin’s Green Bonds Framework.

On the video, Saara Vauramo, programme director for the Lahti European Green Capital 2021 initiative, Teija Ojankoski, CEO of VAV Group, Janne Salonen, finance manager at the city of Tampere and Timo Kenakkala, mayor of Hämeenlinna, describe green projects and the ambitious climate work of cities and municipalities across Finland.

Watch the video!

Read more about MuniFin’s Green bonds

Download MuniFin’s Sustainable Bonds Impact Report (link, opens to a new window)

Class A all the way

In early summer, a group of lucky performing artists and other professionals in the industry will move to a building designed for them in the Kaleva district in Tampere. Situated right next to the new tramway line, the building is a collaboration between the Live Music Foundation ELMU and M2‑Kodit, a company owned by the Y‑Foundation Group offering affordable state-subsidised rental housing.

In 2015, the two foundations found that they share similar values, and 2017 saw the completion of their first collaboration project, the Jallukka building in Helsinki. In Jallukka Helsinki, some of the apartments are earmarked for musicians, and some are regular rental apartments that are rented out by M2‑Kodit. In Tampere, the Jallukka building only inhabits music industry and performing arts professionals.

“Tampere is an important music and theatre city, but it doesn’t have an artist house. This made it a natural choice for the second Jallukka”, explains ELMU’s chair Juha Tynkkynen.

The choice of location was spurred by the Tampere Tramway, which will start operating this year and make the city more interconnected. But luck also played a role.

“The MAL agreement on land use, housing and transport stipulates that 30% of the housing production in Tampere must be state-subsidised. We won a plot with a great location and the project moved forward quickly”, says Pekka Kampman, development director at the Y‑Foundation.

A convenient location with good connections is important for musicians and performing artists who often work late at night.

“The Tullikamari concert and events venue is within crawling distance”, jokes Tynkkynen.

Rehearsal spaces accessible in slippers

Jallukka Tampere has 39 apartments in total. Of these, 17 are earmarked for music industry professionals, and their tenants are chosen by the ELMU foundation. The remaining 22 apartments are earmarked for other performing artists, and they are administered by the Y‑Foundation’s company M2‑Kodit, which also chooses the tenants to these apartments. The demand is great.

“We received about 250 applications for the M2‑Kodit rental apartments”, says Kari Komu, CFO at the Y‑Foundation.

Based on the experiences of the Jallukka building in Helsinki, Jallukka Tampere will also have soundproof band rehearsal spaces and other shared facilities, such as club rooms and saunas. Each apartment has its own storeroom, but residents can also rent out storage spaces for their instruments. Although these special facilities bring extra costs, they are considered important.

“Performing artists appreciate having a studio outside their home, but one that they can access by elevator, for example in their slippers. This is why we wanted to include rehearsal spaces in the building, although we had to cover the costs ourselves”, explain Kampman and Tynkkynen.

The apartments themselves are regular rental apartments and fairly small in size. Sleeping lofts provide extra space in top-floor apartments, which are particularly sought after among artists with families.

Strategy dictates choices

The Y‑Foundation’s strategy is connected to the UN Sustainable Development Goals. The foundation’s three spearhead objectives are the eradication of homelessness, the economic and social well-being of tenants, and a fair transition towards carbon neutral living. The Y‑Foundation seeks to achieve carbon neutrality by 2035.

“Our strategy states that in new construction, we build energy class A residential properties that are implemented with a high level of material efficiency”, Kampman says.

Jallukka Tampere also represents energy efficiency class A, and it has been financed with MuniFin’s green finance.

“Green finance offers us an interest benefit of a few basis points. This difference may not seem significant at an annual level, but over long loan periods, green finance actually saves us hundreds of thousands”, explains Komu.

Savings are also achieved through AI-controlled heat regulation, which anticipates peaks in heating and keeps indoor air in the apartments at an optimal level.

“The apartments have sensors for monitoring temperature and other indoor air conditions. Based on the data, AI finds the most energy-efficient solution to heating. Thanks to this smart solution, we have already been able to bring our annual heating costs down by 5–10% in our other buildings”, Komu says.

The Y‑Foundation owns more than 17,300 rental apartments in over 50 cities across Finland, so this reduction translates to significant savings.

The Y‑Foundation is also committed to improving the energy efficiency of its existing properties by making renovations and upgrades focused on energy consumption and by increasing the use of renewable energy in heating.

“In the future, we will focus heavily on recycling construction materials. Our goal is to increase the recovery rate of non-hazardous construction and demolition waste”, explains Kampman.

The Y‑Foundation’s sustainable ideology is also seen in how the foundation encourages its tenants to adopt low carbon means of transport. Jallukka Tampere does not have parking spaces for all tenants, but residents have access to a communal car or van that they can hire. The building also has a designated room for servicing and maintaining bicycles, just like Jallukka Helsinki does.

“We are offering residents carsharing in Jallukka Tampere for the first time, but we will offer this option in our other new properties in the future”, promises Kampman.

Meeting places wanted

Jallukka Helsinki has received praise for the restaurant and bar that operates on the bottom floor of the building and offers residents an easy place to meet. In Jallukka Tampere, a spacious club room on the first floor will serve as a convenient meeting place.

“People value a sense of community. The residents of Jallukka Helsinki have organised barbeques together and also with other residents in the quarter. However, the building also offers peace and quiet for those that prefer it”, says Tynkkynen.

Inspired by the Jallukka buildings, the Y‑Foundation will start to include lobbies and club rooms in its other new buildings as well. According to Kampman, the use of shared sauna facilities is on the decrease, as the hopes and wants of residents are shifting.

“Our role is to offer facilities for communal activities. We are also planning to include completely novel and innovative shared spaces in our buildings, such as remote work facilities and a small apartment that residents can book for their short-term visitors.”

What about the ELMU foundation’s plans: will there be more Jallukka buildings?

“The demand seems great, especially in the Helsinki region. We are a small foundation with limited resources, so we’ll take one Jallukka at a time”, muses Tynkkynen.

Written by Hannele Borra

MuniFin wins Green bond of the year 2021 award by Environmental Finance

The Green bond of the year award was given to MuniFin by Environmental Finance, which is an online news and analysis service. Environmental Finance reports on sustainable investment, green finance and the people and companies active in the environmental markets.

 – We are delighted and honored to win this award, which is highly valued by market participants. This award is a testimony to our long-term commitment in the field of sustainability. Our ultimate goal is to promote Finland’s climate targets, where local governments play a key role, says Antti Kontio, Head of Funding and Sustainability at MuniFin.

This is not the first time MuniFin ‘s green bonds have received recognition from Environmental Finance. In 2018 MuniFin was awarded in the categories of Green Bond of the Year (SSA) and Biggest issuer (local authority).

MuniFin promotes the achievement of Finland’s climate targets and encourages its customers to achieve theirs by offering green finance for investments that have positive environmental effects. MuniFin is a pioneer in promoting environmentally sustainable development by being the first Finnish issuer of green bonds in 2016. The total amount of outstanding green bonds issued by MuniFin is currently approximately EUR 2 billion.

Green finance is offered to selected projects that promote the transition to low-carbon and climate resilient growth in seven categories. These include sustainable buildings, sustainable public transportation, water and wastewater management, renewable energy, energy efficiency, waste management and environmental management. MuniFin offers a margin discount of 0–10 basis points to approved green finance projects evaluated by an independent expert group.

Second opinion provider Cicero has awarded MuniFin’s Green Bond Framework with its second-best ‘Medium Green’ rating. The Framework has been drafted in accordance to the Green Bond Principles of the International Capital Markets Association (ICMA).

MuniFin has recently set a goal for 20% of its long-term customer finance portfolio to be labelled green and social finance by 2024, standing at around 9% at the end 2020.

Exceptionally strong investor demand

MuniFin issued the award winning green bond on Tuesday 6 October 2020. The 10-year EUR 500 million green bond was the fourth public benchmark green bond issued by MuniFin. Investor interest was exceptionally strong: the order book grew to EUR 3.4 billion, which is the largest green bond order book to date for MuniFin.

The amount of ESG focused investors also grew to 55%, which is the highest allocation to this investor group seen in MuniFin’s green bonds.

Issuer:Municipality Finance Plc (MuniFin)
Rating:Aa1 / AA+ (Moody’s/S&P – both stable)
Issue size:EUR 500mn (no-grow)
Payment date:14th October 2020 (T+6)
Maturity date:14th October 2030
Coupon:0.0%
Re-offer price:101.992%
Re-offer yield:-0.1970%
Re-offer vs. mid swaps:+2bps
Re-offer vs. benchmark:DBR 0% 08/2030 + 30.7bps
Lead managers:Danske Bank, NatWest Markets, Nomura, Nordea

Further information

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

Written by Jenni Heikkilä

Concerns over EU’s proposed Taxonomy for sustainable activities

As a part of EU’s Action Plan for financing sustainable growth, the European Commission is working on an EU Taxonomy, a classification system for sustainable activities. The EU requested feedback on the draft of the first set of criteria for the first two environmental objectives, climate change mitigation and climate change adaptation, in November. The deadline for the feedback was 18 December 2020.

Nordic agencies, MuniFin, Kommunalbanken and Kommuninvest, all seasoned green bonds issuers, have worked on a joint response regarding the EU’s proposed Taxonomy. Each institution has based their feedback on the common Nordic position on the issue and presented their view individually to the Commission.

A concern was expressed that the current draft of the Taxonomy delegated act risks considerably slowing down the harmonisation of the sustainable finance market. The feedback states that the administrative burden could grow to be too high, which could lead project owners (MuniFin’s customers) to prefer traditional borrowing requiring less disclosure. This could eventually lead to fewer eligible assets.

“The Taxonomy is an important tool that can drive the real economy towards making greener investments. However, in order for the Taxonomy to be usable, the so called Do No Significant Harm (DNSH) criteria should be simplified to relieve the excessive administrative burden on the project owner. The principle of proportionality should also be considered. Moreover, we feel the requirements and thresholds of the technical screening criteria should take regional contexts into account to reflect actual differences in environmental performance”, says Karoliina Kajova, Funding Manager at MuniFin.

MuniFin’s feedback

Further information

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

MuniFin returned to Green bond market with a record 55% allocation to Green investors

Mandate of the transaction was released on Monday afternoon 5 October and books were opened on Tuesday morning 6 October at 10:00 am Helsinki time. The first update of the transaction was sent at 11:30am, when the orderbook had grown to a record EUR 2.9 billion and at the same time the spread was set at mid-swaps +2 basis points, 3 basis points tighter from starting level. The final orderbook grew to EUR 3.4 billion, which is one of the largest benchmark orderbooks MuniFin has seen and the largest for MuniFin’s Green bonds. Coupon of the new Green bond is 0%, yield -0.197% and joint lead managers were Danske Bank, NatWest Markets, Nomura and Nordea.

104 investors participated in the transaction and the majority was sold to European institutional investors. Germany, Austria and Switzerland was the largest geographical area with 33% of allocations followed by Nordics 21%, Benelux 10%, Southern Europe 10%, France 9%, Americas 8% and other 10%. Central banks and official institutions bought 33% of the transaction, asset managers 30%, bank treasuries 28% and insurance/pension funds 9%.The amount of ESG focused investors grew to 55%, which is the highest allocation to this investor group seen in MuniFin’s Green bonds.

MuniFin’s Green bonds Framework divides Green finance into seven categories, sustainable buildings and public transportation being the most important ones.

“We are extremely pleased with the outcome. Almost 7 times oversubscribed orderbook and a meaningful greenium of around 2 basis points shows that going green really pays off. 2020 has been a very exceptional year – but we are very happy that we’ve been able to continue our presence in the Green bond market together with our inaugural Social bond just a few weeks ago”, says Antti Kontio, Head of Funding at MuniFin.

Issuer:Municipality Finance Plc (MuniFin)
Rating:Aa1 / AA+ (Moody’s/S&P – both stable)
Issue size:EUR 500mn (no-grow)
Payment date:14th October 2020 (T+6)
Maturity date:14th October 2030
Coupon:0.0%
Re-offer price:101.992%
Re-offer yield:-0.1970%
Re-offer vs. mid swaps:+2bps
Re-offer vs. benchmark:DBR 0% 08/2030 + 30.7bps
Lead managers:Danske Bank, NatWest Markets, Nomura, Nordea

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

Side by side with Lapland’s nature – Ivalo’s new education centre is MuniFin’s northernmost green finance project

A modern new education centre is being built amid the rugged northern landscape along the Ivalo River. It will cover about 9,000 square metres and provide premises for a total of 500 pupils all the way from pre-schoolers to upper secondary school students.

It will be the largest investment in the municipality’s history to be financed with MuniFin’s green finance. The first discussions about the new school were held in 2017. Construction was launched in late summer 2020, and the plan is to open the school gates to pupils in time for the start of the school year in August 2022.

“These kinds of projects are huge in scale – a lot of time is spent on design and planning. Nothing happens in the blink of an eye, even though we’ve been actively moving forward with the project all the time. Expectations are running high throughout the entire municipality,” says Inari’s Municipal Manager, Toni K. Laine.

The new centre is a firm investment in the future and an important step towards a more modern municipality with better services.

“It’s high time for municipalities to get their schools and other public premises into shape. The Municipality of Inari wants to lead by example. We have a clear programme for renewing our public buildings and this education centre constitutes a significant opening,” says Laine.

He reminds us that many Finnish municipalities were largely built in the 70s and 80s. The building stock is becoming irrevocably outdated.

“In some places, the buildings are even older than this. Something has to be done. However, local authorities also hope that the government will be more involved in funding service investments in the future, at least to some extent. There is definitely plenty to do and build in Finnish municipalities,” says Laine, sending his greetings to the decision-makers.

The signing ceremony for the new education centre. Pictured from left to right: Lehto Tilat Oy’s Sales and Project Development Director Juha Paananen, Regional Director Perttu Haapalahti, Inari’s Municipal Manager Toni K. Laine, and Director of Education Ilkka Korhonen. Smiling in the background over a remote connection are Lehto Group’s CEO Hannu Lehto and MuniFin’s Daniel Eriksson

 

Flood risk poses its own challenges

As in many other Finnish schools, Ivalo’s old school premises have had problems with indoor air. However, this is not the only reason for building the new education centre.

“Indoor air issues are often triggers that spark a rapid response, but there may be many other factors in the background. One significant factor was the introduction of the new national curriculum, whose pedagogical requirements could simply not be met in the old premises. The current school environment was designed for a completely different curriculum and era. It has fallen behind the times,” says Laine.

Laine says that, even at the project planning stage, there was already a prevailing consensus within the local authority that a new school was required and should be built. The only real discussion centred around the school’s location.

“Ivalo is a very difficult place to build in, as large areas are at risk of flooding. Although we do naturally already have flood protection in place, we must still carefully consider the location of new construction projects.”

The new school will be built on the site of the old elementary school, on the northern side of the river.

“We also wanted the school to be in harmony with the river,” says Laine.

Side by side with Lapland’s nature

Thanks to its energy efficiency, the building was approved for green finance by MuniFin and is currently the northernmost green finance project. Consolidating operations in modern premises will achieve clear cost benefits, while also guaranteeing safe, high-quality and, above all, healthy teaching premises for children and young people.

“Inari is aiming for the most ecological construction possible in all of its projects. Due to the cold winters, northern weather conditions naturally make ecological construction much more difficult to implement in practice than in the south,” says Laine.

Lapland’s stunning nature and unique landscapes have been the inspiration for the school’s designers.

“The brief for the architects was to create a style of architecture to suit Lapland in particular, by drawing on local nature and culture. Wood is highly visible as a structural element and glass is a similar element to water, keeping it in harmony with the nearby river.”

Wood and glass are highly visible elements in the new education centre. Lapland’s nature was the inspiration for its design.

As Inari is a multi-lingual municipality, working in small groups was a particular focus.

“In addition to excellent spaces for group work, the centre will also have a first-class auditorium that can also be used as a cinema, as well as a top-notch space for cultural shows and exhibitions. We’ll be getting a new, full-size sports hall and a central kitchen, which will be essential for the local authority’s service provision. Extra Lapland enchantment will be provided by a separate kota – a traditional Sami hut that will be used as both a learning and meeting place,” says Laine.

Laine says that Inari has long been on the winning side when it comes to migration. These investments in education will further increase the area’s appeal.

“The new centre will definitely give our image a big boost. We’ll have the opportunity to show people who are considering moving here that we want to provide safe and healthy premises for children and young people and that we’re strongly invested in pedagogical development and education through physical factors. Future generations will be educated in the new centre. A more important factor is hard to find,”says Laine.

FACT: GREEN FINANCE

MuniFin’s green bond and leasing are targeted at financing environmentally friendly investments. Customers can apply for green finance for both small and large scale investment projects that will bring clear and measurable pro-environmental effects.

To receive funding, projects must fall within the scope of one of these areas:
– renewable energy
– public transport
– sustainable construction
– water purification and wastewater treatment
– energy efficiency
– waste treatment
– environmental management and nature preservation

The terms and conditions for green finance are otherwise the same as for MuniFin’s other financing, except that green finance is more affordable for customers than an ordinary loan or leasing agreement.

Text: Pihla Hakala
Photos: Lehto Group (illustration), Municipality of Inari (signing ceremony)

Year 2019 in figures: MuniFin’s annual report and green bonds impact report for 2019 are published

MuniFin published its annual report 2019 On 4 March 2020. Responsibility report, which was previously published as a separate report, is now included in the annual report. At the same time, the company also published its green bonds impact report for 2019.

Watch the video below to see how MuniFin’s President and CEO Esa Kallio and the Head of Customer Finance Aku Dunderfelt sum up the year 2019.

New initiatives in sustainable finance

MuniFin has offered green finance for its customers since 2016. With the help of green finance the company wants to accelerate new projects supporting climate goals in Finland. By the end of 2019, 101 projects all over the country had been granted green finance and the amount of green finance disbursed totalled EUR 1.263 billion. In addition to environmental benefits, green finance enable also various social and economic impacts both locally and regionally.

– MuniFin green finance has steadily grown over four years to nearly EUR 1.5 billion. While there is no doubt that this is a significant amount, it is still too little. More trailblazers are needed to show others the way and to make the benefits of environmental investments more visible. The existing culture must be shaken across all sectors and in every investment decision, and transformed into a more environmentally sustainable model, says Rami Erkkilä, who is responsible for green finance product development at MuniFin.

In February 2020, MuniFin published its Social Bond Framework and launched social finance in the market. Social finance is targeted at investments in non-profit housing promoting equality and sense of community, as well as investments in wellbeing and education.

MuniFin annual report 2019 >

MuniFin Green bonds impact report 2019 >

MuniFin social bonds >

Further information:

Soili Helminen, Manager, Communications and Corporate Social Responsibility, tel. +358 400 204 853

Eeva Toivonen, ESG Analyst, tel. +358 50 464 3073