In 2020 MuniFin forecasts to issue approximately EUR 8.2 billion of long-term funding. The amount is slightly larger compared to 2019 – mainly due to the redemption profile. Focus on strategic currencies, in both EUR and USD, will continue. The plan is to issue approximately 2/3 of the funding through strategic trades and the rest 1/3 through tactical funding: other public markets, private placements and structured retail notes. This is also in line with 2019 allocation.
MuniFin is also planning to increase its presence in theme bond markets. Framework for Social bonds with the related Second Party Opinion will be released within few weeks’ time with the aim to issue the inaugural Social bond during H2/2020. In addition, a new benchmark sized Green bond is planned for 2020. Timing for this transaction will depend on the underlying green asset portfolio.
2019 has been successful in terms of new funding: EUR 7.4 billion has been issued by the end of the year. Out of this almost 65% has been issued in strategic public markets. MuniFin has issued two EUR benchmark transactions (5y and Green in 10 years), two USD fixed rate benchmarks (3 and 5y) and has tapped existing EUR benchmarks two times in 2019.
Top 4 currencies in 2019 have been EUR (35%), USD (29%), JPY (17%) and NOK (14%). These currencies account for more than 95% of the new funding issued in 2019.