Changes in Municipality Finance Executive Management Team

Two members of the Executive Management Team of Municipality Finance (MuniFin) are to change. The CFO Marjo Tomminen and Head of Customer Finance Jukka Helminen are leaving their positions and will not continue working for the company. These decisions were made in a mutual understanding and the changes will take effect immediately.

– I would like to thank Marjo and Jukka for the work they have done for MuniFin in the past years. I wish them all the best for the future, says Esa Kallio, the President and CEO of MuniFin.

Harri Luhtala (born 1965, M.Sc. Econ.) has been appointed as the new CFO and a member of MuniFin Executive Management Team. Mr Luhtala has previously worked in different positions at OP Financial Group, where he last acted as CFO. Mr Luhtala begins in his new position at MuniFin on 8 May 2019.

The selection process for a new director to lead MuniFin’s customer finance is currently ongoing. Customer Finance is temporarily lead by Joakim Holmström, the head of MuniFin’s Capital Markets. Mr Holmström will lead Customer Finance until the nomination of a new Head of Customer Finance.

– The finance industry and our customers’ operating environment are changing rapidly. In order to respond to these changes we need to develop the line-up of our Executive Management Team to better serve our customers’ and internal needs, Esa Kallio says.

Finding friends at work – it all started with an evening brunch

“I think we first started chatting at an after work event,” Jenni Heikkilä and Sina Westerberg say, recalling how they met.

Westerberg is a Financial Controller who started work at MuniFin in 2014 alongside her studies, while Heikkilä, who works with the Apollo tool for financing portfolio management and economic planning, had come to the company a couple of years earlier.

The women share not only the workplace, but also a close group of friends who have bonded and become friends at work. It all started with a shared evening brunch a few years ago.

“We were having breakfast in the evening, because everybody wanted waffles,” Heikkilä says.

Every now and then, this group of seven women get together on a weekday morning to enjoy a slightly better breakfast, which is why the group goes by the name Fancy Breakfast Club. The club members all work in different departments and in various positions at MuniFin.

“Breakfasts are our thing, a way to keep in touch with each other even when we don’t have time to meet otherwise. After breakfast, we head to work together. If we don’t have time for a long breakfast, we pop over for a morning coffee somewhere nearby,” says Westerberg.

It all started with breakfast, but the club members have also travelled in various configurations and taken part in each other’s special celebrations.

“One of the members of the group got married recently and, of course, we were invited to the wedding. Now we are waiting for an invitation to the christening,” Westerberg grins.

The workplace supports friendships

Heikkilä and Westerberg feel that the workplace, its atmosphere and encouraging environment have an impact on friendships being born.

“We have a really nice bunch of people here. It’s a lovely work community, and we have a lot of fun together. If I’m in a bad mood when I arrive at work, I find myself cheering up as the day progresses,” Westerberg says.

“The atmosphere here is welcoming, you can be yourself here,” Heikkilä continues.

MuniFin has grown a great deal in recent years, and a lot of new people have joined the company. Its activities and services have also evolved at a fast pace; for example, the Apollo service didn’t exist when Heikkilä came to the house.

As an employer, MuniFin encourages people to get to know their colleagues also outside of working hours and offers an excellent framework for this.

“Our staff club Kursiseura organises various activities related to sports and physical activity, culture and various other activities where the threshold for joining in is low. At these events, it’s easy to get acquainted with colleagues you don’t often have a chance to talk to otherwise.”

Westerberg and Heikkilä explain that there are other groups of friends at MuniFin too who spend time together and go, for example, skiing. What does a joint workplace actually bring to a friendship? According to Heikkilä and Westerberg, the shared workplace is nothing but a bonus.

“You see each other much more than you would otherwise. Sometimes you’re busy and may not see your other friends for months,” Westerberg ponders.

“You don’t lose track of what’s going on in a friend’s life,” Heikkilä continues.

One of the FTC members has recently changed jobs, but remains closely involved in the group. The two women feel that having friends in the workplace is important for job satisfaction.

“It’s difficult to imagine there being such a close group of friends anywhere else. If I was offered a job somewhere else, I’d have to ask them if they have jobs for my friends too,” Heikkilä laughs.

Nasdaq Helsinki is the new listing venue for MuniFin’s bonds

On April 5 MuniFin listed its four outstanding benchmark bonds on Nasdaq Helsinki. The bonds are issued under MuniFin’s EUR 30 billion euro medium term note programme (EMTN.)

The listing of these bonds marks the first step in Munifin’s ambition to list all their new bonds under the program requiring listing on Nasdaq Helsinki. A euro medium term note is a medium-term, flexible debt instrument designed to make it easy for issuers to raise capital and enter foreign markets.

– We are pleased to use Nasdaq Helsinki for all our future bond listings. MuniFin is one of the most active bond issuers in Finland and we have a diversified and growing investor base around the globe. Nasdaq Helsinki is a well-recognised stock exchange and a natural choice for us, said Joakim Holmström, Head of Capital Markets at MuniFin.

– We are dedicated towards building a strong and dynamic Nordic financial market and are keen to partner with MuniFin in it. Last year we launched a dedicated Sustainable Bond market in Finland, and MuniFin was the first issuer to list green bonds on Nasdaq Helsinki. MuniFin is a market leader and we are pleased with their decision to list additional bonds in Helsinki today. We look forward to developing a booming bond market in Finland and hope MuniFin’s decision will inspire other issuers to join the market, said Henrik Husman, President of Nasdaq Helsinki.

– MuniFin’s green bond listing last year attracted a lot of attention and we believe it contributed to a pipeline of prospective new green bond issuers in Finland. There is no doubt in our minds that the Finnish market will see more green bonds being issued in the coming years as the market is amongst the most mature in terms of sustainability and transparency, said Ann-Charlotte Eliasson, Head of Nordic Fixed Income listings at Nasdaq.

Year 2018 in figures: MuniFin’s annual report, responsibility report and green bonds impact report for 2018 are published

MuniFin’s lending has wide impact on society and therefore responsibility has been broadly integrated in the company’s strategy. Responsibility is also one of the company’s core values.  

The responsibility report assesses MuniFin’s key principles of responsibility with the help of goals and indicators related to each one of them. Responsibility at MuniFin is based on four key principles: responsible products and services, forerunner in sustainability, improving wellbeing at work and strong corporate governance.

Green finance continues to grow steadily

MuniFin launched green finance for its customers in 2016. With the help of the instrument, the company wants to make the climate-friendly green projects more common in Finland.

In 2018, 20 new green projects were added in the green portfolio. Since 2016, EUR 1.143 billion has been withdrawn to finance green projects.

The share of green finance of MuniFin’s total lending and leasing portfolio was 5% at the end of 2018. It is the company’s goal that by the end of 2022 green finance accounts for 10% of the financing portfolio.  

More information:

Soili Helminen, Manager, Communications, tel. +358 400 204 853
Eeva Toivonen, ESG Analyst, tel. +358 50 464 3073

Video: MuniFin for investors

What is MuniFin all about?

MuniFin is a Finnish local government funding agency with a mission to support and develop the wellbeing of the society.

On a brand new video our Head of Capital Markets Joakim Holmström and the Head of Funding Antti Kontio discuss what makes MuniFin special and what you should know about our funding.

MuniFin receives excellent feedback from international distributors

The survey covered the Nordic municipal agencies, namely MuniFin and its counterparties Kommuninvest of Sweden, KBN of Norway and KommuneKredit of Denmark. The Nordic agencies were also compared to other European issuers such as the German KfW, the Dutch BNG Bank, European Investment Bank and Nordic Investment Bank.

– The distributors clearly feel these issuers have credit stories that are relatively similar and all these issuers receive great feedback. However, there are also differences in profiles, says Hanna Helgesson of Prospera.

Strong Finnish economy increase investor interest in MuniFin

The respondents of the survey felt that the insecurities related to other parts of Europe have increased investor interest in MuniFin. Investors have also noticed that the Finnish economy has been picking up pace in the past couple of years.  

MuniFin as a company is recognised by the distributors for its activity in the green bonds market. Some of the respondents also mentioned that social bonds would further increase their interest in the MuniFin securities. Also issuing more benchmark loans was on the distributor wish list.

– MuniFin has a diverse funding strategy which caters for a wide range of investors. They have been able to stay at the forefront of each market, constantly adapting to investor needs. Participation at various events helps them to stay close to their investors and maintain this flexibility in the funding. This is welcomed by the investors, commented one of the respondents.

Survey helps to improve MuniFin’s funding operations

The Prospera survey defines MuniFin as a company with a very professional operation model. MuniFin’s strengths are its funding strategy, clear and consistent way of acting, transparency, information and its perceptiveness to market demands. All these have had a central role in the development of the company’s funding operations in the past years.

– Each year we go through the feedback from the Prospera survey in great detail. Awards we have been given in the recent years are a good indicator we’re on the right path, but the Prospera survey offers us more concrete ideas on how to improve our way of working. It also gives our partners a chance to give constructive feedback, says Joakim Holmström, Executive Vice President and the Head of Capital Markets at MuniFin.

Facts about the survey

Prospera has surveyed North European issuers every year since 2011. The Swedish Kommuninvest was the first company to mandate the survey but MuniFin has for several years been the other assigner of the survey.

Prospera is part of a global research group Kantar Sifo and it specialises in the finance sector research. Its services range from tailored surveys like the one in question but also sector wide market research conducted at its own initiative.

This survey was conducted by 22 phone interviews with international distributors. The respondents were pre-determined as it is essential that the respondents are familiar with the agencies they were asked to review and rate.

MuniFin awarded for its transactions in the Japanese Uridashi market

MuniFin won one of the most respected categories of the awards as it was selected the Issuer of the Year. Additionally, MuniFin receives the Deal of the Year Award in the category of equity index-linked deals.

– MuniFin has had a long-term presence in the Uridashi market. We have always adapted to new trends and been a flexible issuer thereby sustaining stable issuance volumes. The Uridashi market is a strategic part of MuniFin’s funding. MuniFin issues 20–30% of its annual funding in the Uridashi market, says Karoliina Kajova, Manager at MuniFin’s funding.

The mtn-i Uridashi Awards Ceremony will be held in Tokyo on October 23, 2018.

Read more about the mtn-i Uridashi Awards > 

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