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MuniFin issues the second Euro benchmark of the year

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The mandate for the EUR 500 million 7-year Euro benchmark was released at 09:00 CET. The investor demand started out strong and the order book grew steadily reaching a total of EUR 907 million.

The successful benchmark was priced at 14:50 CET with a re-offer spread of MS -6bps, yielding -0.224% with re-offer price of 101.582%. This is equivalent to a spread of 30.3bps over the DBR 0.5% due 15 February 2028.

– This is our second Euro benchmark of the year. We were very pleased to see strong investor demand again together with a minimal new issue premium. In the future we are planning to use this line for taps, says Antti Kontio, Head of Funding and Sustainability at MuniFin.

A total of 33 investors participated in the transaction with 86% allocation to European and 14% to Asian investors. Central banks took the largest 41% allocation and banks were a close second with 38% allocation. The final 21% allocation went to asset managers.

In 2021 MuniFin forecasts to issue EUR 10-11 billion of long-term funding. After this EUR 500 million benchmark MuniFin has reached 43% of the total target.

Issuer:Municipality Finance Plc (“MuniFin”)
Rating:Aa1 / AA+ (Moody’s/S&P – both stable)
Issuer Size:EUR 0,5bn
Payment Date:21st April 2021 (T+5)
Maturity Date:21st April 2028
Re-offer Price:101.5820%
Re-offer Yield:-0.224 %
Re-offer vs. Mid Swaps:-6bps
Re-offer vs. Benchmark:DBR 0.50% due 15 February 2028 +30.3bp
Lead Managers:Danske/LBBW/Morgan Stanley/Nordea

Further information

Antti Kontio, Head of Funding and Sustainability, MuniFin
Tel. +358 500 3700285