The mandate for the new benchmark was announced on Tuesday 10 January. MuniFin received encouraging feedback from the market and decided to open books on Wednesday morning at mid-swaps+2bps area. The demand was strong from the outset and MuniFin was able to tighten the spread by 2bps. In just two hours, the books were closed in excess of EUR 3.6 billion.
The transaction carries an annual coupon of 2.875% and was priced at mid-swaps +0bps, equivalent to a spread of 61.9bps over the OBL 1.3% due October 2027 at the time of pricing.
The orderbook was of very high quality as nearly 60% of allocations went to banks, followed by central banks and official institutions (26%), Asset Managers (11%) and insurance and pension funds (3%). The allocations were also geographically diverse: Germany, Austria and Switzerland took 31% of the orderbook, followed by Nordics (24%), Benelux (14%), France (12%), UK (9%), rest of the world (5%), Other Europe (3%) and Asia (2%).
“This benchmark was a great kick-start for our funding year, and we are extremely happy with the outcome. Our transaction was quickly over twice oversubscribed despite the busy start-of-the-year timing and the uncertain atmosphere at the market, which highlights the great trust placed on us by the global investor community”, says Antti Kontio, Head of Funding and Sustainability.
This year, MuniFin plans to issue EUR 8-9 billion of long-term funding, which is in line with the new issuance volumes in 2022.
|Issue Amount||EUR 1.5 billion|
|Pricing Date||11 January 2023|
|Payment Date||18 January 2028 (T+5)|
|Maturity Date||18 January 2028|
|Re-offer Price / Yield||99.949% / 2.886%|
|Annual Coupon||2.875%, Annual, ACT/ACT ICMA|
|Re-offer Spread||MS +0bps OBL 1.3% due October + 61.9bps|
|Format||Senior, Unsecured, Reg S|
|Listing||Helsinki Stock Exchange (Regulated market)|
|Joint Lead Managers||BofA / JP Morgan / Morgan Stanley / Nordea|
Comments from the bookrunners
“Huge congratulations to the MuniFin team for navigating a busy January window and successfully printing their joint largest ever transaction. This transaction provides an excellent starting point for the year ahead and highlights the value investors place on MuniFin’s core currency offerings.”
Adrien de Naurois, Managing Director, Head of DCM SSA & EMEA IG Syndicate, BofA Securities
“Congratulations to the MuniFin team for their stellar first benchmark issuance of 2023, successfully navigating a busy market. The high quality order book and their largest EUR benchmark since 2020 sets the scene for other Nordic issuers to follow. We are delighted to be involved in this landmark transaction.”
Matthieu Batard, Head of SSA Syndicate, J.P. Morgan
“A successful return to the EUR market for MuniFin with their first benchmark issuance of 2023. Despite competing supply, the deal amassed a high-quality and granular orderbook, which saw the trade tighten 2bps from initial guidance, further highlighting the strength of MuniFin’s credit quality. Congratulations to the MuniFin team on a stellar start to the year, Morgan Stanley is delighted to have been involved!”
Ben Adubi, Head of SSA Syndicate, Morgan Stanley
“Nordea is delighted to have played a role in MuniFin’s first EUR benchmark transaction of the year. Despite a notably congested start to the EUR primary market in January and going head-to-head with directly competing supply, MuniFin emerged with a very successful EUR 1.5bn 5-year benchmark with over twice as much final investor demand behind, while simultaneously tightening the spread by 2bps. Nordea congratulates the entire MuniFin team for kicking off 2023 with a stellar performance that highlights the strong support for its name amongst the global investor community.”
Kamal Grossard-Amin, Managing Director, Head of SSA DCM, Nordea
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
Lari Toppinen – Analyst, Funding
+358 50 4079 300