MuniFin is one of the financiers of the Laakso Joint Hospital, currently being constructed in Helsinki. Success in a project of this scale calls for close cooperation with the financiers, the project company and the guarantors.
A hospital campus on the outskirts of the Helsinki city centre is undergoing a major transformation: two new buildings will be built and two old ones completely renovated. The main building is set to be completed in 2027, the entire campus by 2030.
The Laakso Joint Hospital, as the project is known, is essentially one half of the larger Meilahti-Laakso hospital campus, the larger of the two main hubs of public healthcare in the Finnish capital. It will host a total of 900 patient beds, including 394 for somatic patients and 444 for psychiatric patients. The new facilities will have single patient rooms to support recovery and modern technology to make HUS professionals’ work easier.
The project is an ambitious effort: its overall investment of over EUR 1 billion makes it one of the largest healthcare investments in Finland.
“It’s not just about the scale of the project but also its societal impact. The project advances healthcare infrastructure and supports sustainable development,” explains Heidi Havukainen, Customer Relationship Manager at MuniFin.
Short-term financing by MuniFin got the project started
The project is a joint effort by the City of Helsinki and HUS Helsinki University Hospital, the public healthcare organisation for the Helsinki region and the surrounding Uusimaa province. This is a new approach for both parties.
MuniFin is one of the project’s three different financiers. The project company needed short-term financing to get started: a solution was quickly found with the MuniFin team.
“We began discussions with MuniFin well in advance over whether short-term financing could be arranged through a municipal commercial paper. It was great that we managed to make it happen,” says Keijo Härkönen, Financial Specialist at the City of Helsinki.
Aija Salomaa, Financial Manager at HUS Group, praises MuniFin’s standardised financing decision process, which moves fast compared to international financiers. MuniFin is easy to contact as early as the planning stage, Salomaa says.
“MuniFin was the first party we naturally turned to, to ask how they viewed the project and whether they might be willing to finance it. With MuniFin, we can draw on their financing expertise and discuss the project openly without immediately needing to commit to anything,” Salomaa explains.
“When we are talking about such large sums, of course a reasonable price is a decisive factor. At that point, we need partners capable of financing projects of this scale and who also understand the variables of both the Finnish economy and municipal finances. MuniFin is one of the players whose expertise meets pretty much all our needs,” Härkönen comments on the choice of financing partners.
Regular meetings help keep all partners on the same page
In exceptional projects, it pays to open the financing discussion early. MuniFin’s Customer Relationship Manager Karl Lintukangas commends HUS and the City of Helsinki for their initiative and for getting in touch in the very first stages of the Laakso Joint Hospital project.
“The earlier a client contacts us, the better for us. In this case, they reached out even before the project was properly under way. It’s best to go through the financing terms and options together and find the solution that works best for the client,” he says.
To make sure information flows smoothly, MuniFin has held joint meetings with the project’s various parties every three to four months.
“Various new needs have come up along the way, so it has been worthwhile to hold regular meetings and status reviews,” says Keijo Härkönen.
“We’ve had a very good line of communication with MuniFin. The meetings have been attended by the company’s finance manager and CEO, as well as finance representatives from HUS and the City of Helsinki. That way we all stay up to date on where things are heading,” says Salomaa of HUS.
Images: Aki Rask