All news



MuniFin’s Sterling market debut of the year attracted high-quality investors

London Royal Exchange, luxury shopping centre and Bank of England

The transaction was announced to the market on Wednesday, January 12. The books were opened with price guidance at UKT 06/25 +39bps area. Investor demand was strong and just an hour after opening the books the spread was tightened. The orderbook was finally closed in excess of GBP 430 million.  

This fixed-rate benchmark pays a coupon of 1.125% (annual) and a spread of 38bps over the UKT 0.625% June 2025 reference Gilt. HSBC, NatWest and RBC acted as dealers. 

Central banks and official institutions took 38%, followed by banks at 29% and Fund Managers at 25%. In terms of geography, distribution was concentrated in the UK at 54% and Asia in the second place with 33%. 

– We have established a solid reputation in the Sterling market, and it is shown by the high-quality orderbook, says Manager Miia Palviainen from MuniFin Funding and Sustainability team. 

Transaction details 

Issuer:  Municipality Finance Plc (“Munifin”)  
Ratings:  Aa1 / AA+ (both Stable) by Moody’s / S&P  
Size:  GBP 300,000,000  
Coupon:  1.125% annual, Actual/Actual (ICMA), following unadjusted  
Pricing Date:    12th January 2022 
Payment Date: 19th January 2022 
Maturity Date:  19 th June 2025  
Benchmark:  UKT 0.625 07/06/2025 
Benchmark Spread:  +38bps 
Joint Bookrunners:  HSBC, NatWest, RBC 

Comments from the Bookrunners 

–  Congratulations to the MuniFin team on their excellent first GBP syndication of 2022. They achieved a truly exceptional result, attracting large and diverse investor interest which allowed the deal to be priced with a minimal new issue concession. Going forward, this transaction will establish a valuable new reference point for GBP investors. HSBC was proud to be involved in the transaction. 

Sabrina Khalfoune, HSBC SSA DCM  

–  Munifin were quick to capitalise on the strong Sterling backdrop and entered the market with their first syndicated trade of 2022 becoming the first Nordic agency to enter the Sterling market. This reconfirms their commitment to the currency following a record amount of sterling issuance in 2021 (~15% of funding programme). The high quality and oversubscribed book represents the broad credit appeal of the MuniFin name and we are very pleased to have been involved at NatWest. 

 Kerr Finlayson, Managing Director, NatWest  

–  A fantastic transaction for MuniFin, reacting swiftly to the favourable market conditions and securing their window to price one of the issuer’s most successful outings in the Sterling market. Attracting MuniFin’s largest orderbook in the currency in almost a decade with participation from a broad range of investors is a real testament to the growing presence MuniFin have established in this market in recent years. A really great outcome and RBC was delighted to have been involved.”  

Andrea Jelic, Director, RBC Capital Markets. 

Further information

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