MuniFin kicked the 2017 funding year off with a 10-year euro benchmark bond

Municipality Finance (MuniFin) issued its first benchmark bond for the year 2017 on January 6. The timing of the one billion euro benchmark took advantage of a strong market backdrop of the week and was well oversubscribed.

The 10-year benchmark loan was priced at mid swaps +1 basis point and it has a coupon interest of 0.625 %.  

This benchmark bond was only MuniFin’s second benchmark outing in euros as the majority of previous benchmark issuance has been in US dollars. The euro benchmark was part of MuniFin’s strategy of expanding its investor base. The investor demand was particularly strong out of Germany, representing 35 percent of the allocations. Bank treasuries were the largest investor group taking 60 percent of the issue.

The lead managers of the benchmark were Barclays, Citigroup, J.P. Morgan and Nomura.