MuniFin successfully issued its second USD benchmark of 2025 on Tuesday, 23 September. Exceptional investor demand drove the orderbook to a record USD 5.2 billion—the largest ever for a three-year MuniFin issuance—and enabled the tightest re-offer spread versus US Treasuries to date, setting a new record for a Nordic agency. The transaction reinforces MuniFin’s strong position in the global capital markets.
The mandate for the new USD benchmark was announced on Monday, 22 September, with initial price thoughts at SOFR mid-swaps plus 39 basis points. Investor demand built rapidly. As the orderbook continued to grow, guidance was revised to plus 37 basis points, and ultimately, the spread was set at 35 basis points over SOFR mid-swaps—four basis points tighter than the initial guidance.
Books closed above USD 5.2 billion (including JML interest), allowing MuniFin to comfortably print the USD 1.5 billion size. The transaction priced at 15:32 CET with a reoffer price of 99.912% and a semi-annual yield of 3.656%. The equivalent spread of CT3+8bps marked MuniFin’s tightest re-offer spread to UST and a record for a Nordic Agency.
“We are excited to set these two new records. This transaction demonstrates the depth of our investor base and the strength of our funding strategy. Achieving our tightest ever spread versus US Treasuries is a significant milestone and reflects the trust investors place in MuniFin”, said Senior Analyst Aaro Koski from MuniFin’s funding team.
“Congratulations to the MuniFin team on today’s 3-year USD benchmark. This transaction was a testament to MuniFin’s strong investor reception and further demonstrates the appeal of MuniFin bonds as safe liquid assets. This new liquidity point offers a new opportunity on this part of the curve for investors and helped to reach a diverse group of accounts to partake in the sustainable development mission of MuniFin. BofA is very proud to have been involved”, said Adrien de Naurois, Co-Head EMEA Debt Capital Markets, Bank of America.
Investor participation was both high-quality and globally diversified. Central banks and official institutions accounted for 49% of allocations, while bank treasuries represented 37%. The strong demand from these highly regarded accounts underscores the continued confidence in MuniFin’s credit profile and the appeal of Nordic agency risk.
With this issuance, MuniFin has now completed approximately EUR 9 billion of its EUR 10 billion funding target for 2025.
Transaction details
| Issuer | Municipality Finance Plc (“MuniFin”) |
| Issue rating | Aa1 / AA+ (Moody’s / S&P) (all stable) |
| Issue amount | USD 1,500,000,000.00 |
| Pricing date | 23rd September 2025 |
| Settlement date | 30th September 2025 |
| Maturity date | 6th October 2028 |
| Re-offer price / yield | 99.912 / 3.656% |
| Coupon | 3.625%, semi-annual |
| Re-offer spread | SOFR Mid-swaps + 35bps |
| Spread vs benchmark | UST 3.375% due September 2028 + 8bps |
| ISIN | XS3191626152 / US62628PAK21 |
| Joint lead managers | BofA Securities, Citi, Goldman Sachs, RBC Capital Markets |
Distribution by type
Distribution by region
Comments from joint lead managers
“Many congratulations to the MuniFin team on their second and final USD benchmark of the year. Final books closed in excess of $5.2 billion, with the transaction 3.6x oversubscribed, highlighting investors’ continued strong confidence and support of MuniFin, even at historically tight Treasury spreads. This was another great outcome; Citi was delighted to be involved.”
Ebba Wexler, Managing Director, Head of SSA DCM, Citi
“Congratulations to the MuniFin team for their extremely successful USD benchmark transaction! Robust orderbook dynamics enabled MuniFin to price inside secondaries and reach the issuer’s tightest spread level to Treasuries for a 3-year, which is a reflection of MuniFin’s strong credit quality as well as the excellent global investor support that they command.”
Malik Menzer, Executive Director, Goldman Sachs
“Congratulations to the MuniFin team for executing a highly successful 3-Year USD Benchmark transaction. The final orderbook closed in excess of $5.2 billion, representing MuniFin’s largest 3-Year USD orderbook to-date, and the deal also marks MuniFin’s tightest re-offer spread to US Treasuries, highlighting their strong credit quality and the team’s dedication to engaging with global investors. RBC is proud to have been part of this achievement and thoroughly enjoyed collaborating with the team on this transaction.”
James Taunton, Head of Public Sector Origination, Europe, RBC Capital Markets