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MuniFin issues the first Euro benchmark of the year

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The mandate for the transaction was released at noon London time on Monday 22 February. The books opened the following morning. The orderbook grew quickly, which resulted MuniFin to tighten the final pricing.

The EUR 1 billion 10-year benchmark was priced at 13.15 pm London time with a re-offer spread of MS-3bps, offering a re-offer yield of -0.021% and a re-offer price of 100.210%. This is equivalent to a spread of 28.7bps over the DBR 0.00% due 15 February 2031.

106 investors participated in the transaction with 89% allocation to European investors and 52% allocation to bank treasuries, 24% to asset managers and 23% to central banks and other official institutions.

“We are delighted to see such a strong investor support for our first EUR benchmark this year. The demand has once again been overwhelming and we can only thank the investors for this outcome. We remain committed to maintain a presence in the EUR market and this new 10y line is a welcomed addition to our existing curve”, says Joakim Holmström, the Head of Capital Markets and Sustainability at MuniFin.

In 2021 MuniFin forecasts to issue EUR 10-11 billion of long-term funding. After this EUR 1 billion benchmark MuniFin has reached 36% of the total target.

Issuer: Municipality Finance Plc (“MuniFin”)
Rating: Aa1 / AA+ (Moody’s/S&P – both stable)
Issuer Size:EUR 1bn
Payment Date: 2nd March 2021 (T+5)
Maturity Date:2nd March 2031
Re-offer Price:100.210%
Re-offer Yield:-0.021 % 
Re-offer vs. Mid Swaps:-3bps
Re-offer vs. Benchmark:DBR 0.00% due 15 February 2031 +28.7bp
Lead Managers:Barclays / Citi / HSBC / Swedbank

Comments from the bookrunners

 “What a great deal – MuniFin built a large, high quality orderbook, 3.8x oversubscribed, in what has been a very competitive market recently.  The success is a testament to how well the issuer has presented itself to the EUR market over recent years, their rarity and excellent support from the global investor base.”  

Lee Cumbes, Head of Public Sector, Barclays

“A stellar result for MuniFin, garnering their second largest orderbook to date for their first Euro benchmark of 2021. The issuer’s ability to move quickly following the sell-off in rates enabled them to capture the attention of a broad range of high-quality investors. Congratulations to the MuniFin team for the strong outcome, Citi is delighted to have been involved in the transaction.”

Ebba Wexler, Managing Director, Public Sector DCM, Citi

“MuniFin was able to capitalize on constructive market conditions to execute its first EUR benchmark transaction of 2021. Today’s orderbook highlights the strong following MuniFin receives from the global investor base, with the deal more than 3x oversubscribed, allowing pricing to move 2bps through execution and to price flat to fair value. HSBC is proud to have helped lead this transaction. Congratulations to the MuniFin team.”

Asif Sherani, Head of DCM Syndicate EMEA, HSBC

“Great to see MuniFin enter the Euro market in 2021 with such a strong, well received, transaction. A smooth process, with a well oversubscribed book, enabled MuniFin to price with zero NIC, despite the recent volatility seen in the market. A true testament to the depth and commitment of the MuniFin investor base. Swedbank is very proud to have been part of this transaction and would like to congratulate the entire MuniFin team on the successful deal.”

Linda Lindblad, Head of SSA Origination, Swedbank 

Further information

Joakim Holmström
Executive Vice President, Capital Markets and Sustainability, MuniFin
Tel. +358 50 4443 638

Antti Kontio
Head of Funding and Sustainability, MuniFin
Tel. +358 500 3700 285