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MuniFin’s green bond premiere in the Sterling market attracted ESG investors

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Taking advantage of the constructive market tone, MuniFin announced the transaction on Tuesday 26 October at 9:10 London time. The books opened with price guidance at UKT 09/24 +30bps area. The size was fixed from the outset at GBP 250 million. The orderbook grew steadily and was finally closed in excess of GBP 300 million at 12:15.

Central banks and official institutions took 44% of the orderbook, with Asset Managers as a close second with 42.9% participation. Geographically, European investors took 54.2%, excluding the Nordics. Asia Pacific took 34% and Africa and the Middle East 10%.

– We are excited to have issued our inaugural green bond in the GBP market and to have been able to offer the green bond product to the Sterling market. It was great to add a fourth currency to our green bond offering and to further diversify our green bond investor base. We are humbled by the vote of confidence from our investors and we couldn’t be happier, says Karoliina Kajova, Senior Manager at Funding and Sustainability at MuniFin.

MuniFin has previously issued EUR and USD green bonds in the public market and one private placement in AUD. The first green bond was issued in 2016. With this transaction MuniFin is close to completing its funding target for the year.

Read more about the transaction:

Transaction details

Issuer:Municipality Finance Plc (“Munifin”)
Ratings:Aa1 / AA+ (both Stable) by Moody’s / S&P
Size:GBP 250,000,000
Coupon:0.875% annual, Actual/Actual (ICMA), following unadjusted
Pricing Date:26th October 2021
Payment Date:02nd November 2021
Maturity Date:16th December 2024
Benchmark:UKT 2 ¾ 09/07/24
Benchmark Spread:+30bps
Joint Bookrunners:BofA Securities, Nomura, TD Securities

Comments from the bookrunners

Huge congratulations to the Municipality Finance team for navigating the volatile backdrop and printing a hugely successful, second GBP transaction of 2021. Excellent to see the issuer benefiting from the growing demand for ESG assets in GBP and adding a fourth currency to their Green bond offerings. The orderbook is testament to the strong following MuniFin has gathered amongst the UK investor base, as well as the broader global central bank community.

Adrien de Naurois, Managing Director, Head of DCM SSA & EMEA IG Syndicate, BofA Securities

“Nomura was delighted to support Municipality Finance’s inaugural Green outing in the Sterling market – a resounding success, broadening MuniFins’s ESG investor universe and reinforcing the sustainability commitment of the organisation.”

Mark Yeomans, Managing Director, SSA Debt Capital Markets, Nomura

“Congratulations to the MuniFin team on a fantastic inaugural GBP Green transaction. There was notable participation from dedicated green investors in this trade; a clear vote of confidence from the market in MuniFin’s credentials in the ESG space. This transaction has added a fourth currency to MuniFin’s green offerings and helps further expand their green investor base.”

Laura Quinn, Managing Director, Head of Primary Markets, TD Securities, Dublin

Further information

Joakim Holmström

Executive Vice President, Capital Markets and Sustainability, MuniFin

+358 50 4443 638

Antti Kontio

Head of Funding and Sustainability, MuniFin

+358 50 3700 285

Karoliina Kajova

Senior Manager, Funding and Sustainability, MuniFin

+358 50 5767 707