MuniFin’s inaugural NOK social bond was issued on 13 February. Despite ample supply from SSA issuers in the NOK market, the demand for the NOK 2 billion issue was strong, with a high quality investor base.
The issue marked both MuniFin’s first ESG labelled bond and the first NOK trade this year. The books built very quickly and were closed at a spread of +25 bps over 3-month Nibor.
“Over the past years, MuniFin has established themselves as a frequent issuer in the Nordic market, popular amongst a wide array of investors. The new issue marks the first social bond issued by MuniFin in Norway and the label was a significant contributor to the great investor demand”, says Hedda Giæver, Head of IG International, DBN Bank ASA.
The strong investor base showcased significant interest from bank treasuries, as well as domestic and foreign real money, including pension insurance and asset managers.
80% of the issue was allocated to Norwegian investors.
“We are extremely happy to have been able to return to the Norwegian Krona market. What’s even more pleasing is to be able to do it with a social bond. It is in the very core of our Sustainability Agenda to provide financing to social projects and increase their share in our lending portfolio. We are ever grateful for the support from our investors”, says Aaro Koski, MuniFin’s Funding Analyst.
Transaction details
| Issuer: | Municipality Finance (KUNTA, MuniFin) |
| Issue Rating: | Aa1/AA+ |
| Status: | Senior unsecured |
| Reoffer Price: | 99.631% / 4.083% |
| Reoffer Spread: | 3mN+25bps |
| Issue Size: | NOK 2bn |
| Settlement: | 20 February 2024 |
| Maturity: | 20 February 2029 |
| Coupon: | 4% Fixed, Annual, Act/Act Icma Unadjusted Following |
| Listing: | Nasdaq Helsinki |
| ISIN: | XS2769883955 |
| Lead Manager: | DNB Markets |
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 45 138 746