MuniFin issued an inaugural green private placement

On October 25th 2017, MuniFin issued its first privately placed green bond for the Japanese mutual life insurance company Fukoku Life. Fukoku Life was the sole investor in the 10-year AUD 50 million (EUR 33 million) private placement.

Previously MuniFin has issued two publicly traded green bonds. The public green bond transactions were issued in 2016 and 2017, sized at USD 500 million and EUR 500 million respectively.

The first private transaction, arranged between MuniFin and Fukoku Life, highlights both the issuer’s and investor’s commitment to the development of the green bond market.  

– Fukoku Life is very pleased to be the first institutional investor to subscribe to MuniFin’s Green Bond program in private placement format, and thereby contribute to further reduce greenhouse gas emissions and improve energy efficiency in Finland. “Contribution to Society” is one of Fukoku Life’s management philosophy. Thus, this investment is an emblematic example of our social and environmental consideration, not only in Japan but also worldwide, comments Takehiko Watabe, CIO, Fukoku Mutual Life Insurance Company.

– We are delighted to cooperate with Fukoku Life, a prime Japanese ESG investor. This transaction emphasises MuniFin’s long-term presence and commitment to the Japanese market. Hence, we are particularly pleased to offer our green bonds to the Japanese institutional investor base, says Esa Kallio, President and CEO (interim), Head of Capital Markets, MuniFin.

The transaction was arranged by Crédit Agricole CIB.

– MuniFin Green Bonds framework has been drafted according to the Green Bond Principle and a second opinion has been given by both the Stockholm Environment Institute and CICERO. MuniFin chose a very strong selection process for eligible projects by putting in place an independent Green Loan Committee which evaluates, approves or declines and grades each projects. The involvement of Fukoku Life in supporting MuniFin’s Green Bond Framework highlights a strong endorsement of their policy, comments Tanguy Claquin, Global Head of Sustainable Banking at Crédit Agricole CIB.

Further information

Joakim Holmström
Vice President, Head of Funding, MuniFin
joakim.holmstrom(at)munifin.fi
tel. +358 9 6803 5674

Antti Kontio
Funding Manager & Head of Corporate Responsibility, MuniFin
antti.kontio(at)munifin.fi
tel. +358 9 6803 5634