Three months following the record-breaking USD 1.5 billion issuance in January, MuniFin returns to the USD market with another 1 billion benchmark. The 3-year bond successfully gathered a high-quality orderbook.

On Tuesday 16 April, MuniFin issued a new 3-year USD 1 billion benchmark with initial price guidance of MS+33 basis points. Investor demand continued to grow throughout the morning and books closed a few hours later in excess of USD 1.5 billion.

The bond was priced at MS +33 basis points, consistent with the initial guidance, with a coupon of 4.875%, a reoffer price of 99.708% and a re-offer yield of 4.981%. It carries a spread of 18 basis points over the CT 3 4.500% due 15 April 2027.

The final orderbook was geographically diverse with 48 high-quality accounts participating. Central banks took 57% of the allocations, followed by Banks and bank treasuries (40%), and Asset Managers, taking the remaining 3%.

“Investor demand started to accumulate after a moderate start, eventually reaching over USD 1.5 billion. We were particularly pleased with the quality of the final orderbook, as majority was allocated to central banks and official institutions. We have now successfully secured a little less than half of our funding target for the year”, says Analyst Aaro Koski.

After this transaction, MuniFin has now completed EUR 4.5 billion of its EUR 9–10 billion funding programme for 2024.

Distribution

Transaction details

Issuer:	Municipality Finance Plc (“MuniFin”)
Rating:	Aa1 / AA+ (Moody’s/S&P – both stable)
Issue Size:	USD 1 billion
Payment Date:	23 April 2024 (T+5)
Maturity Date:	23 April 2027
Coupon:	4.875%
Re-offer Price:	99.667%
Re-offer Yield:	4.996%
Re-offer vs. Mid Swaps:	+33bps
Re-offer vs. Benchmark:	CT 3 4.500% due 15 April 2027 +18bps
ISIN:	XS2807531657 / US62630CEL19
Lead Managers	J.P. Morgan SE, Morgan Stanley Co & International PLC, Nomura Financial Products Europe GmbH, TD Global Finance unlimited company

Comments from Lead Managers

Ben Adubi, Managing Director, Head of SSA, Morgan Stanley:

“Another successful outing in the USD market for MuniFin following their strong 5-year issued earlier this year. Taking advantage of the favourable move in swap spreads and recent sell-off in rates, the deal amassed a high-quality and granular orderbook with 57% of allocations to CB/OIs, which is a testament to the strength of MuniFin’s credit quality and their opportunistic funding strategy. Congratulations to the MuniFin team on a stellar start to Q2, following on from an impressive start to the year, Morgan Stanley is delighted to have been involved!”

Mark Yeomans, Managing Director, Nomura:

“Yet another strong USD outing from MuniFin; with the new 3-year benchmark complementing the 5-year issued earlier in January. MuniFin took advantage of the global back up in rates to deliver another record 4.875% coupon for investors, as witnessed in their previous 3-year from last October. The quality of the orderbook is a testament to the investor following that MuniFin enjoys as a safe haven asset and the diligent investor outreach of the entire funding team. Nomura were delighted to be a part of such an important transaction.”

Ioannis Rallis, Executive Director, Head of SSA DCM, J.P. Morgan:

“Congratulations to the MuniFin team for printing another solid USD benchmark this year! Despite uncertain geopolitical backdrop and busy pipeline in the week, MuniFin was successfully able to achieve its tightest spread vs SOFR MS (+33bps) for a MuniFin USD 3-year benchmark. The high quality of the orderbook reflected in the 57% allocation to CB/OIs is a testament to investor confidence in MuniFin’s name. We are delighted to be involved in this transaction.”

Laura Quinn, Managing Director, Global Co-Head of SSA and Head of Dublin Debt Capital Markets:

“Congratulations to the MuniFin team on a successful USD benchmark transaction, launching their first 3-year USD benchmark in 2024 and second USD benchmark this year. MuniFin secured an efficient funding window this week to ensure they could complete their USD 1 billion funding exercise.  The exceptionally high-quality orderbook is a testament to MuniFin’s standing in the fixed income market.”

Read more

MuniFin’s USD 1.5 billion benchmark faced phenomenal demand 

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

MuniFin’s GBP 250 million issue on February 29 was well received in the market, with particularly strong participation from central banks and official institutions. With this transaction, MuniFin has now printed one third of its EUR 9–10 billion funding programme for the year 2024.

Distribution of the transaction was once again broad both in terms of investor types and geographics, which is testament to MuniFin’s strong position in the global investor community. 

Central banks and official institutions were the largest investor component, taking 59% of the final book. The participation was also strong from banks and bank treasuries (39%), with fund managers, pension funds and insurance accounts representing 2%. In terms of geography, the transaction was broadly diversified across UK (41%), Asia (34%) and EMEA ex. UK (25%) investors.

“This was our first GBP line of the year, and it was great to extend our GBP issuance curve today. We are grateful for the investor following we have in the Sterling market and it has been a pleasure to be able to be on the screens again”, says Senior Manager Karoliina Kajova from MuniFin’s funding and sustainability team.

Press release from bookrunners

Issuer:	Municipality Finance Plc (“Munifin”)
Ratings:	Aa1 / AA+ (both Stable) by Moody’s / S&P
Format:	Senior, Unsecured, Reg S, Registered
Coupon:	4.375% Fixed, Annual, ACT/ACT ICMA, short first
Size:	GBP250 million
Pricing Date:	29th February 2024
Payment Date:	7th March 2024 (T+5)
Maturity Date:	2nd October 2028
Reoffer Spread:	SONIA MS + 30 bps | UKT Oct-28 + 29.6bps
Joint Bookrunners:	J.P. Morgan, RBC Capital Markets, TD Securities

Comments from bookrunners

“Congratulations to the MuniFin team for a strong return to the GBP market, taking advantage of a clear issuance window to extend their GBP curve with a new benchmark. The strong support from a diverse group of investors and the competitive price point is a testament to MuniFin’s standing in the international market. We’re delighted to be involved!”
Tina Nguyen, Vice President, SSA DCM, J.P. Morgan

“Congratulations to the MuniFin team on the new GBP Oct-28 Benchmark. Taking advantage of a clear issuance window, MuniFin were able to extend their GBP Benchmark curve and maintain their regular presence in the Sterling SSA market. RBC were delighted to be a part of the transaction.”
James Taunton, Director, SSA DCM, RBC Capital Markets

“We are delighted to be involved in MuniFin’s successful return to the Sterling market with their first GBP Benchmark of the year. This syndication is a clear demonstration of their global support from a diversified investor base. Congratulations to the MuniFin team on an excellent trade.”
Paul Eustace, Managing Director, Global Co-Head of SSA and Head of Europe and Asia Syndicate, TD Securities

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

Only two weeks after MuniFin’s highly successful opening transaction of the year, MuniFin priced a new USD 1.5 billion benchmark on 24 January. Investor demand was phenomenal from the beginning and resulted in an all-time record orderbook of USD 4.4 billion. The bond is also the largest USD issuance since 2021.

The record-breaking bond carries a coupon of 4.250%, and was priced at SOFR mid-swaps+47bps, equivalent to a spread of +22.6bps over the UST 3.75% due 31 December 2028. From the initial price thoughts of +50bps, MuniFin was able to tighten the final pricing by 3bps due to the outstanding demand from high-quality investors. 

The final orderbook was of very high-quality and geographically diverse with 83 investors participating. In terms of investor type, the majority of allocations went to banks (49.1%), followed by central banks and other official Institutions (39.5%) and Fund Managers (11.4%).

Considering the busy primary market, the result was quite impressive and received praising comments from the joint lead managers on the transaction.  

“Congratulations to the MuniFin team on their first USD benchmark outing of 2024. The new USD 1.5 billion, 5-year benchmark garnered a high-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 proud to have been involved in this transaction”, said Katrin Wehle, Managing Director and Head of SSA CDM Origination at Deutche Bank. 

MuniFin’s funding programme is progressing at a very good pace, as after this transaction, the company has printed nearly 25% of its EUR 9–10 billion programme for 2024. 

“It has been a busy start for us at MuniFin, as we decided to kick off our funding year with two benchmarks and printed already a quarter of our funding programme within less than one month. We are extremely excited to break a new record with an overwhelming demand of USD 4.4 billion for this USD benchmark. We are humble for the exceptional reception and want to extend our thanks to all our investors and joint lead managers who participated in making this happen”, says Senior Manager Karoliina Kajova from MuniFin’s funding and sustainability team. 

Transaction details

Issuer	Municipality Finance Plc (“MuniFin”)
Issue Amount	USD 1.5 billion
Issuer Rating	Aa1 /AA+ (Moody’s / S&P) (all stable)
Pricing Date	24 January 2024
Settlement Date	31 January 2024 (T+5)
Maturity Date	31 January 2029
Re-offer Price /Yield	99.942% / 4.263%
Annual Coupon	4.250%
Re-offer Spread	Mid-swaps +47bps
Spread vs Benchmark	UST 3.750% due 31st December 2028 +22.6bps
Listing	Helsinki Stock Exchange (Regulated market)
Documentation	Issuer’s Debt Issuance Programme dated 7 September 2023
ISIN	XS2757519280 / US62630CEK36
Joint Lead Managers	Barclays, BMO, Citigroup, Deutsche Bank

Comments from joint lead managers

 “Congratulations to the MuniFin team for another fantastic outing in the USD benchmark space. We are delighted to see the team achieve a record orderbook well in excess of USD 4bn and with granular interest from over 80 investors. The USD 1.5bn 5Y deal priced with minimal concession to the secondary curve, testament to the strong name recognition that MuniFin enjoys with investors around the world.“

Massimo Antonelli, Managing Director BMO Capital Markets

“Congratulations to the MuniFin team for a phenomenally successful USD outing, with this latest benchmark extending the issuer’s USD curve. The largest ever USD orderbook for MuniFin at USD 4.4 billion, as well as its joint-largest USD print over the past decade at USD 1.5 billion, is a testament to the firm standing of MuniFin amongst the global investor community.  Moreover, size did not come at the expense of price, with the trade seeing a 3bps move tighter in spread during execution and crucially with no attrition in the size of demand. Barclays is honoured to have supported this transaction.”

Francesco Polon, Director, SSA Debt Capital Markets, Barclays

 “An resounding return to the US dollar market for MuniFin. With a constructive and supportive primary market and stable macro backdrop, MuniFin priced their largest transaction in dollars since 2021 and achieved its largest ever orderbook with the transaction 2.9x oversubscribed. Citi is delighted to have been involved in this record-breaking trade. Congratulations!”

Ebba Wexler, Managing Director, Head of SSA DCM, Citi

Further information

Joakim Holmström, Executive Vice President, Capital Markets and Sustainability 

Tel. +358 50 4443 638  

Antti Kontio, Head of Funding and Sustainability 

Tel. +358 50 3700 285 

Karoliina Kajova, Senior Manager, Funding 

Tel. +358 50 5767 707 

Lari Toppinen, Senior Analyst, Funding 

Tel. +358 50 4079 300 

Aaro Koski, Analyst, Funding

Tel. +358 45 138 7465

Read more

MuniFin succeeds with a EUR 1 billion 10-year benchmark in a record breaking market

The plan is to issue approximately 60% of the long-term funding through EUR and USD benchmarks and the rest through other public markets (e.g., GBP, NOK, AUD) and private placements. MuniFin will aim to focus slightly more on the other public markets in 2024. The maturity target for the year will be around 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 2023, MuniFin has issued approximately EUR 10 billion of new long-term funding and the program is nearly completed. This year MuniFin has issued five new EUR and USD benchmarks, together with several EUR taps on the existing lines. Three of the benchmarks were in EUR and two in USD.

MuniFin had a record year on the green side, as MuniFin issued a new long 5-year EUR 1 billion green bond, which was the largest EUR green bond of all time in the Nordic SSA market at the time in February. MuniFin also issued a USD 100 million 4-year social bond in private placement format in August.

In other public markets, the main currencies have been GBP and NOK, but MuniFin has also issued in CHF and NZD. MuniFin has been more active proportionally in EUR and USD benchmarks this year than last year. 

The top four issuance currencies in 2023 are thus far EUR (51%), USD (28%), GBP (11%) and NOK (4%). These currencies account for over 94% of the new funding issued in 2023. 

^{Further information} 

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 

Seizing the opportunity presented by favourable market conditions, MuniFin promptly announced its second USD benchmark of the year with initial price thoughts at SOFR MS+40bps area. The books opened on Thursday morning with high demand, allowing MuniFin to tighten the spread by 2bps, fixing the trade at SOFR MS+38bps.

Ultimately, the orderbooks were closed at an impressive USD 3.3 billion, leading MuniFin to set the final size at USD 1.25 billion. This issuance stands as MuniFin’s most substantial USD Benchmark since January 2021. 

“Congratulations to the MuniFin team on a successful transaction; reacting swiftly to the favourable market conditions and clear issuance window to secure their second USD Benchmark in 2023. Final demand in excess of USD 3.3bn marks one of MuniFin’s largest ever USD books; a reflection of the high-quality credit and recognition of the team’s efforts on global investor engagement. RBC was delighted to be involved and it was a pleasure working with the team on this transaction”, says Eleanor Singer, Vice President, SSA DCM, at RBC Capital Markets. 

“Maintaining our strong dedication to the USD benchmark market, we are delighted to return for the second time this year. We extend our gratitude to all the investors who participated. With this new benchmark we are almost done with our funding for 2023”, says Antti Kontio, Head of Funding and Sustainability at MuniFin.

The transaction was distributed to a broadly diversified group of investors across Europe (39.1%), Americas (28.7%), MEA (17.3%) and Asia Pacific (14.9%). The orderbook included 85 high-quality investor accounts, with significant participation from central banks and other official institutions (40.3%) and asset managers (15.3%). 

With this transaction, MuniFin has completed EUR 9.5 billion of its 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:	RegS / 144A
Coupon:	4.875% Fixed, S/A, 30/360, short first
Size:	USD1.25 billion
Pricing Date:	5th October 2023
Payment Date:	13th October 2023 (T+5)
Maturity Date:	13th January 2027
Reoffer Spread:	SOFR MS + 38 bps | CT3 + 17.2bps
Joint Bookrunners:	BofA Securities, J.P. Morgan, RBC Capital Markets, TD Securities

Comments from the Bookrunners

“Huge congratulations to the MuniFin team for strategically taking this week’s window despite the volatile backdrop. An excellent result for MuniFin’s second USD benchmark of 2023 as illustrated by the size and depth of the orderbook. Bank of America is extremely proud to have been a part of this transaction and successfully rounding out MuniFin’s benchmark funding for 2023.” 

Robert Matthews, Vice President, SSA DCM, BofA Securities 

“Congratulations to the MuniFin team for swiftly responding to market conditions, taking advantage of a clear issuance window to price a successful transaction! The orders over $3.3bn+ not only make this one of MuniFin’s largest orderbooks but also underline investors’ confidence in MuniFin’s name. This was apt to end the benchmark funding on a high note and we’re delighted to be involved!” 

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

“Congratulations to the entire MuniFin team on a seamlessly executed new 3yr USD transaction. MuniFin were nimble in their approach to securing an efficient funding window this week which paid off with an incredible USD 3.3bn final orderbook from a wide variety of global USD investors.” 

Paul Eustace, Managing Director, Global Co-Head of SSA and Head of Europe and Asia Syndicate, TD Securities 

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