The mandate for the transaction was announced on Monday 17 January and books were opened the following morning. Investors showed strong interest and just after ninety minutes MuniFin tightened the pricing.
Finally, the books were closed in excess of EUR 2.05 billion. Final spread was set two basis points lower than the initial guidance. The new bond carries a coupon of 0.250%, and was priced at mid-swaps-5bps, equivalent to a spread of +37.7bps over the DBR 0% due February 2032.
The successful transaction gathered a high-quality and geographically diverse investor base. Banks took the largest share with 35% followed by central banks and official institutions with 31%, asset managers with 23% and insurers and pension funds with the remaining 11%.
Geographically, the largest share went to Benelux region with 32% followed by Germany, Austria and Switzerland with 22%, France with 17%, Asia with 10%, the Nordics with 9%, The Americas 5%, the UK with 4% and other European accounts with 1%.
A new member of the MuniFin Funding and Sustainability Team since 10th January, Lari Toppinen, worked closely on the transaction.
– We are extremely pleased with the outcome and grateful for the trust placed in us by the investors. As a recent reinforcement of the MuniFin team, working on the deal was exciting and rewarding for me as it was one of my first ones here. I look forward to collaborating more with the team and our bookrunners and investors in the coming months.
Toppinen is one of four people working with funding in MuniFin. This includes tasks such as issuing benchmarks, private placements, hedging as well as dealer and investor relations.
This year, MuniFin plans to issue EUR 9-10 billion of new long-term funding. After this benchmark MuniFin has reached almost 30% of the target. Since the start of the year, MuniFin has already issued several NOK denominated bonds, a new Sterling line maturing in June 2025 as well as a handful of private placements.
Comments from the dealer banks
– A fantastic way for MuniFin to start its euro benchmark funding this year. In a busy market, MuniFin demonstrated its broad investor appeal with a high quality, and geographically diverse final orderbook which closed twice oversubscribed. Congratulations to the MuniFin team! Citi is delighted to have been bookrunner on this successful transaction.
Ebba Wexler, Managing Director, Public Sector DCM, Citi
– MuniFin continues their strong start to 2022 with their first EUR benchmark of the year. Final pricing through Fair value in an extremely competitive market, is a clear testament to the strength of the credit and excellent support that MuniFin enjoys from a well-diversified and high-quality investor community. Danske Bank is delighted to have been part of this successful transaction and proud to support MuniFin in reaching their funding target of EUR 9-10bn for 2022.
Axel Zetterblom, SSA Origination, Danske Bank
– A fantastic outcome for MuniFin’s first Euro benchmark of the 2022 calendar year. The transaction was met with strong investor interest from a diverse range of high-quality accounts, and the two times oversubscribed orderbook highlights the strength of the issuer’s credit quality. Deutsche Bank is delighted to be part of this transaction.
Achim Linsenmaier, Global Head of Public Sector Origination DCM, Deutsche Bank
– Congratulations to MuniFin on a phenomenal transaction to kick off their EUR benchmark funding for 2022. A combination of immensely loyal investors and fantastic execution judgement from the MuniFin team provided an amazing result in what was a busy EUR market.
Laura Quinn, Managing Director, Head of Primary Markets, TD Securities
Executive Vice President, Capital Markets and Sustainability, MuniFin
Tel. +358 50 4443 638
Head of Funding and Sustainability, MuniFin
Tel. +358 500 3700285