MuniFin is the only financial institution in Finland focused on financing the municipal sector and affordable social housing production. All our financing promotes social development and wellbeing, but our sustainable finance products are designed to encourage our customers to make investments that are particularly impactful and responsible.
Our sustainable finance follows the same terms and conditions as our other financing, but green and social finance projects must also meet the criteria set in our green and social bond frameworks. Approved projects receive a margin discount. We source the funding for our sustainable finance products by issuing green and social bonds.
MuniFin’s green finance is aimed at investments that are climate-friendly and environmentally sustainable. MuniFin’s social finance is granted to investments that produce widespread social benefits.
We publish a list of all projects that have received green or social finance and report on their impacts annually to the media, international investors and other key stakeholders.
Financing projects with the largest impact
Green finance encourages investments that mitigate climate change
Green finance can be granted to investment projects that produce clear and measurable benefits for the climate and environment. The projects must fall under one of MuniFin’s Green Bond Framework categories: buildings, transportation, renewable energy or water and waste water management.
Being approved for green finance signifies that the project creates a significant positive impact. Green projects receive a margin discount, which is determined by the scope of the project’s impact. The project is evaluated for its measurable benefits, innovation and comprehensive sustainability management. The greener the project, the larger the margin discount.
Social finance promotes the wellbeing of communities and individuals
Projects that receive MuniFin’s social finance produce widespread social benefits. They create positive impacts on their surrounding community by promoting equality, communality, safety, welfare or regional vitality. MuniFin’s Social Bond Framework stipulates that financed projects must fall under one of its three categories: social housing, welfare or education.
Being approved for social finance signifies that the project creates significant social benefits. Social projects receive a margin discount.
Criteria for eligible projects
Green finance can be granted to investment projects that produce clear and measurable benefits for the climate and environment.
Financed projects must fall under one of the following main categories:
- Buildings
- Transportation
- Renewable energy
- Water and waste water management
Projects are evaluated and selected by MuniFin’s Green Finance Team. Selection is based on criteria defined in MuniFin’s Green Bond Framework and information provided in the application. We encourage customers to consider the criteria during the project planning phase and in the project documentation. The Green Finance Team may request applicants to provide additional information on the project’s environmental impacts.
Social finance projects must create positive effects on their surrounding community: they promote equality, communality, welfare or regional vitality.
Financed projects must fall under one of the following Social Bond Framework categories:
- Social housing projects
- Housing for the most vulnerable population
- Affordable social housing that promotes communal living
- Welfare
- Investments related to healthcare and the promotion of good health
- Investments promoting wellbeing and the prevention of illnesses, such as investments related to cultural and sports services
- Education
- Day-care centres
- Schools
- Education centres and campuses
Project eligibility for social finance is assessed by the Social Evaluation Team, whose members are Jenni Airaksinen (University of Tampere), Jouni Parkkonen (Finnish Affordable Housing Companies’ Federation KOVA) and Rami Erkkilä (MuniFin).
Green Bond Framework
Social Bonds Framework
Contact us
Our experts in sustainable finance
