The history of Municipality Finance

Municipality Finance Plc was established in 2001 when its predecessors, the old Municipality Finance Plc and Municipal Housing Finance Plc were merged to form a new company. Like its predecessors, Municipality Finance was founded to ensure affordable financial services for the local government sector under all market conditions.

Domestic and international funding acquisition – milestones through the years:

In spring 2010, financial leasing was added to Municipality Finance’s service palette.

In January 2010, Municipality Finance’s work in the international capital market received significant recognition, as large international banks selected the company as Market Choice SSA Issuer of the Year in a vote organised by MTN-i.

2009 Municipality Finance celebrates its 20th anniversary. The company carries out a share issue and an increase in equity, with a total of 12.7 million new shares subscribed to. The company receives EUR 40.7 million in new equity and 39 new shareholders, of which the Finnish state is the largest. After the share issue the company has 303 shareholders, of which 272 are municipalities.

2008 Municipality Finance's funding acquisition reaches record levels at EUR 4.6 billion.

2007 Municipality Finance adopts the International Financial Reporting Standards (IFRS). The Municipality Finance Group is formed, consisting of the parent company Municipality Finance Plc and its subsidiary, Financial Advisory Services Inspira Ltd (formerly Municipality Finance's financial advisory services unit)

2006 a share issue is carried out and equity increased, adding 48 new shareholders. The total amount of share subscriptions is EUR 26 million. Municipality Finance's second targeted municipal bond is issued to finance the construction of the Kotka Maritime Museum.

2004 A financial advisory services unit is established under Municipality Finance. Municipality Finance's first-ever targeted municipal bond is issued to finance the construction of services in the City of Nilsiä and the Tahko region.
The Finnish State receives a long-awaited resolution from the European Commission confirming that guarantees put up by the Municipal Guarantee Board for Municipality Finance's funding acquisition programmes are in line with EU regulations on state subsidies.

1998 Municipality Finance and Municipal Housing Finance issue their first bonds denominated in euros.

1997 Municipal Housing Finance begins international funding acquisition with a USD 750 million EMTN programme.

1997 Municipality Finance issues KVS bonds intended as a corporate investment instrument, later to be internationalised and termed the Treasury Bill Programme in 1999.

1997 The company's first index-linked municipal bond is issued.

1996 The Municipal Guarantee Board is established to put up guarantees for Municipality Finance's funding acquisition programmes. This helps the company to take advantage of the municipal sector's high level of creditworthiness in funding acquisition more effectively, and to be competitive as it orients itself towards international financial markets.

1996 The municipal bond programme becomes Finland's first bond programme under which loans listed on the Helsinki Stock Exchange can be issued.

1993 186 municipalities and the Association of Finnish Local and Regional Authorities establish Municipal Housing Finance Plc to manage the financing of municipal housing production.

1993 Municipality Finance issues its first municipal bonds.

1992 Municipality Finance signs the EMTN framework agreement on issuing long-term bonds on the euro markets.

1990 the old Municipality Finance Plc begins operations. The company is owned by the Local Government Pensions Institution, which also guarantees its funding acquisition. The company focuses on financing for municipalities, municipal federations and municipally owned corporations.