On 10 May 2022 MuniFin priced an EUR 500 million fixed-rate green benchmark due 17 May 2029. Utilizing a supportive issuance window and a strong demand for green assets, MuniFin opened books at 8:15 London time with price guidance at mid-swaps –8bs area. The limit was fixed to EUR 500 million.
The demand was strong from the outset and just in two hours the spread was tightened by 3bps. Shortly after, the books were closed in excess of EUR 1.4 billion. The transaction pays a coupon of 1.5% (annual) and a spread of mid-swaps – 11bps.
The transaction attracted a significant amount of ESG investors: nearly 80% of the final orderbook went to green investors. Central banks and official institutions took 38%, Asset managers 24% and bank treasuries 22%. Geographically; Germany, Austria and Switzerland took 24%, followed by BeNeLux at 23% and Nordics at 16%.
“The multiple times oversubscribed transaction shows us, once again, how solid our investor base truly is. Despite the volatile atmosphere in the market, our green bond attracted also brand new investors. We are extremely pleased with the outcome and especially the great support from the ESG investor community”, says Analyst Lari Toppinen from MuniFin funding team.
Finance for Finland’s green transition
MuniFin has offered its customers green finance for sustainable investments since 2016. Funding for green projects is sourced by issuing green bonds. For investors, MuniFin’s green bonds offer a way to finance positive impacts through carefully selected projects in e.g. sustainable building, public transportation and renewable energy categories.
Transaction details
| Issuer: | Municipality Finance Plc (“MuniFin”) |
| Ratings: | Aa1 / AA+ (both Stable) by Moody’s / S&P |
| Size: | EUR 500,000,000 |
| Coupon: | 1.5% annual, Actual/Actual (ICMA), following unadjusted |
| Pricing Date: | 10th May 2022 |
| Payment Date: | 17th May 2022 |
| Maturity Date: | 17th May 2029 |
| Mid Swap Spread: | -11bps |
| Joint Bookrunners: | BNPP, Danske Bank, NatWest, SEB |
Comments from bookrunners
“Congratulations to the MuniFin team for successfully launching their second EUR benchmark and first green bond of 2022. To execute such a solid transaction given the volatile market backdrop is a strong testimony of Munifin’s ability to build a strong and diversified investor following.”
Salma Guerich, DCM SSA, BNPP
“Congratulations to MuniFin on their highly impressive return to the EUR Green Bond market. With final pricing through fair value and a large and high quality orderbook in challenging market conditions, this truly demonstrates the strength of the credit and the support that MuniFin enjoys from the ESG focused investor community. Danske Bank is proud to have been part in this successful transaction.”
Axel Zetterblom, SSA Origination, Danske Bank
“A fantastic return to the Green Bond market for MuniFin. The quality of the investor base came through from the outset with investors showing strong support for the first MuniFin Green issuance of 2022. Amidst a more volatile backdrop, the extremely positive reception exemplifies the quality and demand for the MuniFin name, and support for their Green framework. We are very proud to have been involved at NatWest,”
Kerr Finlayson, Head of FBG Syndicate, NatWest
“SEB is delighted to have taken part in MuniFin’s latest triumph in the EUR Green bond market. Despite significant market volatility creating a challenging backdrop, the transaction garnered a high-quality, multiple times subscribed order book, and a final reoffer level through the fair value curve. This is a clear demonstration of MuniFin’s long-standing reputation amongst the ESG investor community.”
Rebekah Bray, Deputy Head of SSA Origination, SEB
Further information
Joakim Holmström – Executive Vice President, Capital Markets and Sustainability
+358 50 4443 638
Antti Kontio – Head of Funding and Sustainability
+358 50 3700 285
Karoliina Kajova – Senior Manager, Funding
+358 50 5767 707
Miia Palviainen – Manager, Funding
+358 50 5980 829
Lari Toppinen – Analyst, Funding
+358 50 4079 300