MuniFin kick-starts funding fall by returning to USD market 

After a short summer break, MuniFin reopened the funding year with a 5-year USD 1 billion benchmark. With this transaction, MuniFin has reached almost 80 percent of its funding target for this year.

On 17 August 2022, MuniFin priced a 5-year USD 1 billion benchmark. The transaction extends MuniFin’s strategic USD curve to August 2027. The previous USD benchmark was issued in August last year. 

Taking advantage of the first viable transaction window after the summer holidays, MuniFin opened the books at 8:15 GMT. Investor engagement was strong from the outset and the books were finally closed at 15:15, in excess of USD 1.15 billion. The transaction pays an annual coupon of 3.25% and a spread of SOFR MS +52bps.  

The final high-quality orderbook had nearly 90% participation from central banks, banks and other official institutions. Geographically, 38% of the investors were from Europe (excluding Nordics), followed by Americas at 32%. Nordics took 17% of the final orderbook.  

“This transaction was strategically important to us in terms of extending our existing USD curve. Despite the somewhat challenging market backdrop, we were able to attract very high-quality investors thanks to our strong investor base”, says Manager Miia Palviainen from MuniFin funding team. 

Transaction details 

Issuer: Municipality Finance Plc (“MuniFin”) 
Ratings: Aa1 / AA+ (both Stable) by Moody’s / S&P 
Format: RegS/144A 
Size: USD 1 billion 
Pricing Date: 17th August 2022 
Payment Date: 24th August 2022 
Maturity Date: 24th August 2027 
Coupon: 3.25%, Fixed, semi-annual, 30/360 
Reoffer Spread: SOFR MS + 52 bps | CT5 +28.5 bps 
Joint Bookrunners: BMO / Barclays / Citi / Daiwa 

Comments from the bookrunners

“Congratulations to MuniFin for the successful new 5-year benchmark, taking its place amongst the other leading SSA issuers reopening the USD market in the middle of August. The issuer moved smartly into the recent recovery in demand and confidence in the USD rates market, securing a high quality final orderbook and confirming the continued support of its global investor base.”  

Lee Cumbes, Head of EMEA DCM, Barclays 

“Congratulations to the MuniFin team for their USD 1bn 5Y benchmark which comes after 12 months after their last USD fixed rate outing. The MuniFin team was quick in seizing a late summer issuance window to be an early mover, taking advantage of the lack of supply over the summer weeks and the expected busy USD pipeline ahead.”  

Massimo Antonelli, Managing Director, BMO Capital Markets 

“Citi is delighted to have been part of MuniFin’s first USD benchmark transaction of the year. Despite August traditionally being a quiet month for the SSA market, the MuniFin team has been successful in kick starting its funding program ahead of the Autumn period, taking advantage of the strong USD SSA primary market. Congratulations again to the MuniFin team.”  

Ebba Wexler, Public Sector Origination, Citi 

“Daiwa is delighted to have supported MuniFin in this USD 1bn 5Y benchmark transaction as one of the first issuers in the market post the summer break, and its first venture to the USD market since August 2021. The issuer was able to extend its USD curve by choosing the 5Y tenor, which has been rare outside of tier 1 supranational issuers in recent months.”  

Jez Walsh, Head of Syndicate, Daiwa Capital Markets Europe 

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