MuniFin made a strong return to the 5-year sector issuing its largest and tightest USD benchmark since 2013. The last benchmark in that tenor was issued in March 2019 and the last USD benchmark was issued in June 2020.
The mandate announcement was released on Monday 11 January 2021 at 13:10 CET with IPTs of MS+10bps area. Despite the busy time of the year, MuniFin was able to find an open issuance window and quickly gather an impressive orderbook (USD 3.1bn) of the highest quality.
The benchmark was finally priced at MS+8bps, with central banks and official institutions taking over 40% of the final allocations. Geographically, EMEA took the bulk with 79% of the allocations, supplemented by Americas (16%) and Asia (5%).
In 2021 MuniFin forecasts to issue EUR 10-11 billion of long-term funding, making the USD 1.5 billion benchmark a great start for the year.
| Issuer: | Municipality Finance Plc (“MuniFin”) |
| Ratings: | Aa1 / AA+ (both Stable) by Moody’s / S&P |
| Format: | RegS/144A |
| Coupon: | 0,625% Fixed S/A, 30/360, long first coupon |
| Size: | USD 1.5 billion |
| Pricing Date: | 12th January 2021 |
| Payment Date: | 19th January 2021 (T+5) |
| Maturity Date: | 20th March 2026 |
| Reoffer Spread: | MS + 8bps | CT5 + 17.78bps |
| Joint Bookrunners | BofA / GSI / JPM / TD |
Comments from the bookrunners
“A great result for MuniFin’s first benchmark of the year in a very busy market. The issuer was able to capitalise on exceptionally strong demand from investors, pricing with minimal concession to their outstanding curve. A true testament to the high esteem they are held in across the SSA investor universe.”
Adrien de Naurois, Managing Director, Head of SSA DCM & EMEA IG Syndicate, BofA Securities.
“MuniFin reacted swiftly to the receptive primary market environment and claimed its execution window ahead of a building January pipeline. They were rewarded with increased transaction size and the tightest spread versus mid-swaps as well as USTs that they have achieved for a 5-year benchmark to-date. An impressive outcome for the Finnish agency.”
Angelica-Maria Strolz, Executive Director, J. P. Morgan.
“Fantastic outcome for the issuer who was able to extend their curve at a very attractive spread with a minimal spread to their outstanding 3-year benchmark while printing the larger size.”
Dorothee Amar, Executive Director, SSA, Goldman Sachs International.
“Congratulations to the MuniFin team on the successful execution of their first USD benchmark of 2021. They once again confirmed their flawless execution capabilities in the USD market, even with a busy SSA backdrop. The orderbook in excess of USD 3.1bn clearly shows that global investors continue to savour the opportunity to buy MuniFin USD bonds.”
Laura Quinn, Managing Director, Head of Origination & Syndication, TD Securities, Dublin.
Further information
Joakim Holmströn
Executive Vice President, Capital Markets, MuniFin
Tel. +358 50 4443 638
Antti Kontio
Head of Funding and Sustainability, MuniFin
Tel. +358 500 3700285