MuniFin successfully issued a AUD 500 million 5-year benchmark on 23 June. The transaction marks the issuer’s return to the AUD market after a 12-year break and attracted strong demand from high-quality investors.
MuniFin capitalised on favourable market conditions and successfully re-entered the Kangaroo market. The reoffer spread was set at SQ ASW +43 bps, and the final order book exceeded AUD 780 million.
“We are pleased to return to the AUD market after a long break. This successful transaction, supported by a high-quality order book, further diversifies our investor base and provides a strong foundation for future issuances,” said Senior Analyst Aaro Koski, from MuniFin’s funding team.
Harald Eikeland, Head of APAC Syndicate at RBC Capital Markets, which acted as joint lead manager, commented:
“Congratulations to the MuniFin team on achieving a highly successful return to the Kangaroo market. The transaction amassed high-quality support from domestic and international investors, which is testament to the global recognition of the name. This establishes a strong and liquid reference point for MuniFin in the AUD SSA market, which will serve as a firm bedrock for issuance in years to come.”
The order book was geographically well diversified: 63% allocated to EMEA investors, 22% to Australia, 14% to Asia and 1% to the Americas. By investor type, allocations were 55% to central banks and official institutions, 34% to asset managers and 11% to banks.
Following this transaction, MuniFin has now completed approximately 65% of its EUR 9–10 billion long-term funding target for the year.
Transaction details
| Issuer: | Municipality Finance Plc (“MuniFin”) |
| Ratings: | Aa1 / AA+ (Stable/ Negative) by Moody’s / S&P |
| Format: | Kangaroo |
| Coupon: | 4.850% s.a. RBA bond basis |
| Size: | AUD 500 million |
| Pricing Date: | 23 June 2026 |
| Payment Date: | 30 June 2026 (T+5) |
| Maturity Date: | 30 June 2031 |
| Reoffer Spread: | Sq ASW + 43bps | ACGB 1.500% Jun-31 +42.8bps | EFP +47.8bps |
| Joint Bookrunners | J.P. Morgan, RBC Capital Markets, UBS |
Comments from joint lead managers
“Congratulations to the MuniFin team on a successful return to the Kangaroo market. The strong investor reception reflects MuniFin’s credit strength and broad cross-currency appeal. This landmark transaction establishes a robust platform to further deepen access to this strategic market and continue diversifying MuniFin’s investor base. Congratulations once again!”
Tim Pinchen, Executive Director, AUD Syndicate, J.P. Morgan
“Congratulations to the Munifin team for a very successful return to the Kangaroo market. The transaction demonstrated that there is a large and high-quality investor base eager to support MuniFin. UBS was honoured to have been able to support this.transaction.”
Cameron Lofstedt, Executive Director, SSA DCM, UBS