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MuniFin wins Green bond of the year 2021 award by Environmental Finance

Picture of a young woman reaching for water with a greend bond logo and an green bond of the year award logo.

The Green bond of the year award was given to MuniFin by Environmental Finance, which is an online news and analysis service. Environmental Finance reports on sustainable investment, green finance and the people and companies active in the environmental markets.

 – We are delighted and honored to win this award, which is highly valued by market participants. This award is a testimony to our long-term commitment in the field of sustainability. Our ultimate goal is to promote Finland’s climate targets, where local governments play a key role, says Antti Kontio, Head of Funding and Sustainability at MuniFin.

This is not the first time MuniFin ‘s green bonds have received recognition from Environmental Finance. In 2018 MuniFin was awarded in the categories of Green Bond of the Year (SSA) and Biggest issuer (local authority).

MuniFin promotes the achievement of Finland’s climate targets and encourages its customers to achieve theirs by offering green finance for investments that have positive environmental effects. MuniFin is a pioneer in promoting environmentally sustainable development by being the first Finnish issuer of green bonds in 2016. The total amount of outstanding green bonds issued by MuniFin is currently approximately EUR 2 billion.

Green finance is offered to selected projects that promote the transition to low-carbon and climate resilient growth in seven categories. These include sustainable buildings, sustainable public transportation, water and wastewater management, renewable energy, energy efficiency, waste management and environmental management. MuniFin offers a margin discount of 0–10 basis points to approved green finance projects evaluated by an independent expert group.

Second opinion provider Cicero has awarded MuniFin’s Green Bond Framework with its second-best ‘Medium Green’ rating. The Framework has been drafted in accordance to the Green Bond Principles of the International Capital Markets Association (ICMA).

MuniFin has recently set a goal for 20% of its long-term customer finance portfolio to be labelled green and social finance by 2024, standing at around 9% at the end 2020.

Exceptionally strong investor demand

MuniFin issued the award winning green bond on Tuesday 6 October 2020. The 10-year EUR 500 million green bond was the fourth public benchmark green bond issued by MuniFin. Investor interest was exceptionally strong: the order book grew to EUR 3.4 billion, which is the largest green bond order book to date for MuniFin.

The amount of ESG focused investors also grew to 55%, which is the highest allocation to this investor group seen in MuniFin’s green bonds.

Issuer:Municipality Finance Plc (MuniFin)
Rating:Aa1 / AA+ (Moody’s/S&P – both stable)
Issue size:EUR 500mn (no-grow)
Payment date:14th October 2020 (T+6)
Maturity date:14th October 2030
Re-offer price:101.992%
Re-offer yield:-0.1970%
Re-offer vs. mid swaps:+2bps
Re-offer vs. benchmark:DBR 0% 08/2030 + 30.7bps
Lead managers:Danske Bank, NatWest Markets, Nomura, Nordea

Further information

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

Written by Jenni Heikkilä