The mandate for the EUR 1 billion transaction was announced on Tuesday 18 February and the books opened the following morning with initial price guidance at midswaps+5bps area. In just two hours, the orderbook stood at EUR 1.05 billion and price guidance remained unchanged.
Finally, the orderbook was closed in excess of 1.8 billion. The new bond carries a coupon of 3.125%, and was priced at mid-swaps+5bps, equivalent to a spread of +71.8bps over the DBR 0% due 15th February 2030.
“Due to the uncertain market situation lately, many SSA issuers have postponed their transactions resulting in busy primary markets. Despite the heavy supply, we were able to find a favourable window and were satisfied with the outcome. It was also nice to add a new liquid pricing point into our EUR curve”, says Antti Kontio, Head of Funding and Sustainability at MuniFin.
The final orderbook was of very high quality as banks took the bulk (56%), followed by central banks and official institutions (36%,) Asset Managers (7%) and pension funds and insurers (1%).
Geographically, the transaction attracted a diverse group of investors: Germany, Austria and Switzerland took the largest share (28%), followed by Asia (20%) and UK (19%), Benelux (12%), the Nordics (9%), France (7%) and the rest of the world (5%).
With this transaction, MuniFin has completed nearly 60% of its long-term funding target for the year.
Read the press release:
|Issuer||Municipality Finance Plc (“MuniFin”)|
|Issue Amount||EUR 1 billion|
|Issuer Rating||Aa1 /AA+ (Moody’s / S&P) (all stable)|
|Pricing Date||19 April 2023|
|Settlement Date||26 April 2023 (T+5)|
|Maturity Date||29 July 2030|
|Re-offer Price /Yield||99.722% / 3.170%|
|Annual Coupon||3.125% (short first coupon)|
|Re-offer Spread||Mid-swaps +5bps|
|Spread vs Benchmark||DBR 0% Due 15th February 2030 +71.8bps|
|Listing||Nasdaq Helsinki Stock Exchange (Regulated market)|
|Documentation||Issuer’s Debt Issuance Programme|
|Joint Lead Managers||Citi, Deutsche Bank, Goldman Sachs, JP Morgan|
Comments from Joint Lead Managers
“Many congratulations to the MuniFin team on such a successful outcome for their third euro transaction of their 2023 funding program. Despite a volatile rates backdrop, MuniFin were able to price their longest euro benchmark of the year on the back of an extremely high quality and oversubscribed order book. Citi is delighted to have been involved!”
Ebba Wexler, Managing Director, Public Sector DCM, Citi
“Congratulations to the MuniFin team on their third EUR benchmark outing of 2023. The new EUR 1bn long 7-year benchmark garnered a quality orderbook amidst a busy primary market for SSA issuers. MuniFin’s agility in adapting to market windows once again enabled them to achieve attractive cost of funding for their activities which support the mission of building a better and more sustainable future for its clients. Deutsche Bank is pleased to have been involved in this transaction.”
Katrin Wehle, Managing Director, Head of SSA DCM Origination, Deutsche Bank
“Many congratulations to the MuniFin team on successfully accessing the EUR market for the third time in a row this year. A strong return to the market following a period of broader volatility, capturing interest from a wide range of good quality investors while achieving the price and volume targets. The Goldman Sachs team was extremely delighted to be part of this transaction.”
Edward Markham, Managing Director, Goldman Sachs
” Congratulations to the MuniFin team on printing a solid €1bn transaction in 7-year part of the curve, being the first Nordic agency to access the tenor this year. The orderbook size of €1.8bn+ is a testament to investor confidence in MuniFin’s name, as it stands as the issuer’s largest EUR 7-year orderbook to date. We are delighted to be involved in this landmark transaction.”
Matthieu Batard, Head of SSA Syndicate, J.P. Morgan
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
Aaro Koski – Analyst, Funding
+358 45 138 7465