The Nordic local government funding agencies – set up to provide low cost and stable funding for public investments in Denmark, Finland, Norway and Sweden – are amongst Europe’s most creditworthy and important issuers of SSA debt. Collectively, Kommunalbanken (Norway), KommuneKredit (Denmark), Kommuninvest (Sweden) and Municipality Finance (Finland), issue $35-40 billion annually in bonds, notes, and commercial paper.
MuniFin issued its second USD benchmark for the year 2015 on September 2. The one billion US dollar benchmark was the first USD benchmark following a period of volatile markets caused by the turbulence in China.
Municipality Finance Plc (MuniFin) increased the existing Kangaroo 2024 bond on April 17th by 75 million AUD. After this transaction the size of the bond is AUD 500 million. The original transaction was issued in March, 2014 with final maturity of 10 years and there has been three tap transactions before the most recent one.
The Finnish Financial Supervisory Authority FIN-FSA confirmed that it regards the bonds issued by Municipality Finance Plc (MuniFin) as HQLA Level 1 liquid assets.
On the 9th of January, 2014 MuniFin (AAA, Aaa) issued the first public note of the year: a 2-year USD 700 million floating rate note. Maturity of the note will be in January, 2016 and the coupon is 3 month USD Libor +6 basis points. The joint lead managers for the note are Citibank, HSBC and Nomura. MuniFin estimates that it will acquire approximately EUR 7 billion of long-term funding in 2014.
Municipality Finance (MuniFin) was selected as the issuer of the year for 2013 in the series of FX-linked products by Capital Market Daily (CMD). In addition, MuniFin was number two in the series of IR-linked products. CMD award winners were selected from among the issuers of medium term note (MTN) products.
Municipality Finance (MuniFin) returned on March 10th to the Australian Kangaroo market by issuing a 10 year AUD 125 million (EUR 80 million) public note.
The first bond of the year issued in Swiss francs by Municipality Finance (MuniFin) was a great success in the market despite the tight pricing and long-term funding of 10 years. The coupon paid by MuniFin to investors is a record low at 0.75 per cent, which corresponds to mid-swaps -16 basis points.