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MuniFin returns to the Swiss bond market

Last week, MuniFin decided to return to the CHF market by issuing its first CHF bond since 2017. The latest tap was made in 2020. The new 5-year fixed-rate bond pays an annual coupon of 1.6250%.

”Congratulations to the MuniFin team on successfully launching their first new CHF line since 2017. Seizing the right window allowed MuniFin to take advantage of favorable market conditions to raise a new CHF 150 million 5y line at SARON MS-16bps, the tightest level achieved by a foreign issuers YTD in 5y”, said Lead Manager Salma Guerich, DCM SSA from BNP Paribas (Suisse).

MuniFin has a long history issuing in the Swiss market and now it was a good time for a comeback.

Both pricing and investor demand lined up so that we were able to return to the market again after a pause. We are grateful for the trust our investors place in us”, says Senior Manager Karoliina Kajova from MuniFin’s Funding and Sustainability team.

The order book was made up of Swiss investors. The largest share (50%) went to banks, followed by Asset Managers (34%) and insurance and pension funds (15%). The rest (1%) went to central banks and other official institutions.

”The success of this transaction is a strong testimony to MuniFin’s diverse Swiss investor following which was also affirmed in the tap done in 2020”, Guerich continued.

With this transaction, MuniFin has completed over 60% of its long-term funding target for the year.

Transaction details

Issuer:Municipality Finance PLC (Kuntarahoitus Oyj) (BBG Ticker: KUNTA)
Issuer ratings: Aa1 (stable) / AA+ (stable) (M/S)
Issue size: CHF 150m
Life: 5yr
Trade date:17 May 2023
Payment date: 16 June.2023
Maturity date: 16 June2028
Coupon: 1.6250% Fixed, Annual, (30/360)
Spread / Yield: SARON MS-16bps / YTM 1.5575%
Issue price: 100.322 %
Documentation: Off the Issuer’s EUR 45bn EMTN Programme
Listing: SIX Swiss Exchange
ISIN: CH1244321779
Lead Manager: BNP Paribas (Suisse) SA

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