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MuniFin issues a record-breaking EUR 1 billion green bond

The mandate was announced on Tuesday 14 February and the books were opened the following morning at mid-swaps -1bps area. Demand for MuniFin’s first green issuance this year was strong from the outset and the books were finally closed just 2,5 hours later in excess of EUR 2.2 billion. The transaction pays an annual coupon of 3.00% and was priced at mid-swaps -3bps. 

Nearly 80% of the high-quality orderbook was allocated to ESG investors. Otherwise, the allocation was well diversified as 46% went to banks and 31% to Asset Managers. Geographically, Nordics took 37% followed by DACH at 29% and Benelux at 13%.  

“This transaction marks already the 8th green bond issuance in MuniFin’s history, and it is encouraging to see how the demand for sustainable bonds keeps on growing. We are extremely happy with the outcome and the strong support from the ESG investor community. As a new member of the MuniFin Funding and Sustainability team, this was also personally exciting for me as this was my first large issuance to be involved in since I joined MuniFin”, says Analyst Aaro Koski. 

With this record-breaking green bond MuniFin has issued approximately 40% of this year’s EUR 8-9 billion long-term funding target.  

Read the press release:

Transaction details

Issuer:Municipality Finance Plc (“MuniFin”)
Ratings:Aa1 / AA+ (both Stable) by Moody’s / S&P
Size:EUR 1,000,000,000
Coupon:3% annual, Actual/Actual (ICMA), following unadjusted
Pricing Date:15th February 2023
Payment Date:22nd February 2023
Maturity Date:25th September 2028
Mid Swap Spread:-3bps
Joint Bookrunners:CACIB / Danske Bank / HSBC / NatWest Markets

Comments from bookrunners

“Credit Agricole CIB is proud to have assisted MuniFin with its successful return to the green bond market. MuniFin not only achieved an outstanding result in terms of tight pricing and diversified high-quality investor demand, it also raised the bar on the green bond issue size of EUR 1 billion – the largest EUR green bond in the Nordic SSA market to date. Credit Agricole CIB would like to congratulate the MuniFin team for its longstanding commitment to Sustainability and for continuously supporting the development within the Nordic region and on a global scale.” 

Lawrence Duquesne-Garner, Managing Director, SSA Origination, Credit Agricole CIB

“This is a fantastic outcome for Munifin and a testament of the quality in their recently updated green bond framework. We are pleased to see a Munifin being able to attract such a strong order book with pricing through their EUR curve despite an uncertain market backdrop. Danske Bank is proud to have supported Munifin with the framework update and as a lead manager on the first green bond issue thereafter.”  

Gustav Landström, Head of SSA Origination at Danske Bank

“A stellar result for MuniFin, capitalizing on constructive market conditions to print its largest ever green benchmark. Today’s deal highlights the strong following MuniFin receives from the global investor base as well underlining MuniFin’s strength as a green issuer. The deal was 2x oversubscribed, allowing pricing to move 2bps through execution and price with a minimal new issue concession. HSBC is proud to have helped lead this transaction. Congratulations to the MuniFin team.”

Sabrina Khalfoune, SSA DCM, HSBC

“With this transaction, MuniFin have issued their largest green benchmark to date. This represents an ongoing commitment from MuniFin to create large liquid benchmarks in Green format and also highlights an increased engagement from the investor community. The latter point is evidenced by a 2x oversubscribed book and issuance at fair value. ESG is at the core of NatWest’s business model and we are incredibly proud to have been involved in this issuance.”

Damien Carde, Head of FBG DCM, NatWest Markets

Finance for Finland’s green transition

MuniFin has offered its customers green finance for sustainable investments since 2016. Funding for green projects is sourced by issuing green bonds. For investors, MuniFin’s green bonds offer a way to finance positive impacts through carefully selected projects in buildings, transportation, renewable energy and water and waste water management categories. 

Read more about our green bonds

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 – Analyst, Funding 

+358 50 4079 300 

Aaro Koski – Analyst, Funding

+358 45 138 7465