MuniFin has taken another significant step in the Nordic green finance market by issuing its inaugural green bond in Swedish krona (SEK). The successful SEK 4 billion issuance represents the largest green transaction outside EUR and USD benchmarks for MuniFin.
On Tuesday, 12 November, MuniFin issued its first SEK green bond. The SEK 4 billion bond carries a fixed annual coupon of 2.4825% and matures 19 November 2029. Danske Bank acted as the sole manager for this transaction.
“We congratulate MuniFin with their SEK 4 billion 5y green bond and the first green bond for MuniFin SEK. Today’s transaction confirms the continued interest in green format from investors in an otherwise challenging market, and combined with a solid issuer it proves to be the right strategy in the current market environment”, says Bo Søndergaard, Head of SSA at Danske Bank.
This issuance follows MuniFin’s debut in the Norwegian krone market in September, where it launched its first NOK 2 billion green bond. The new SEK bond is MuniFin’s fourth ESG-labelled issuance this year.
“The Scandi market has been favourable to us this year, and we are excited to expand our green offerings into yet another currency. I want to thank all our investors and customers who make it possible for us to grow our green finance in line with our Sustainability Agenda”, says Lari Toppinen, Senior Analyst at MuniFin.
After this transaction, MuniFin is very close to reaching its 9 billion long-term funding target for the year.
Transaction details
| Issuer: | Municipality Finance |
| Issuer Rating: | Aa1/AA+ (Stable/Stable, Moody’s/S&P) |
| Format: | Senior Unsecured Green Bond |
| Size: | SEK 4 bn |
| Settlement Date: | 19-Nov-2024 (T+5) |
| Maturity Date: | 19-Nov-2029 |
| Reoffer: | MS+26.75 / 2.4825% / 100.000% |
| Coupon: | 2.4825%, Fixed, Annual, 30/360 |
| Listing: | NASDAQ Helsinki |
| ISIN: | XS2942472205 |
| Lead Manager: | Danske Bank |