Seizing the opportunity presented by favourable market conditions, MuniFin promptly announced its second USD benchmark of the year with initial price thoughts at SOFR MS+40bps area. The books opened on Thursday morning with high demand, allowing MuniFin to tighten the spread by 2bps, fixing the trade at SOFR MS+38bps.
Ultimately, the orderbooks were closed at an impressive USD 3.3 billion, leading MuniFin to set the final size at USD 1.25 billion. This issuance stands as MuniFin’s most substantial USD Benchmark since January 2021.
“Congratulations to the MuniFin team on a successful transaction; reacting swiftly to the favourable market conditions and clear issuance window to secure their second USD Benchmark in 2023. Final demand in excess of USD 3.3bn marks one of MuniFin’s largest ever USD books; a reflection of the high-quality credit and recognition of the team’s efforts on global investor engagement. RBC was delighted to be involved and it was a pleasure working with the team on this transaction”, says Eleanor Singer, Vice President, SSA DCM, at RBC Capital Markets.
“Maintaining our strong dedication to the USD benchmark market, we are delighted to return for the second time this year. We extend our gratitude to all the investors who participated. With this new benchmark we are almost done with our funding for 2023”, says Antti Kontio, Head of Funding and Sustainability at MuniFin.
The transaction was distributed to a broadly diversified group of investors across Europe (39.1%), Americas (28.7%), MEA (17.3%) and Asia Pacific (14.9%). The orderbook included 85 high-quality investor accounts, with significant participation from central banks and other official institutions (40.3%) and asset managers (15.3%).
With this transaction, MuniFin has completed EUR 9.5 billion of its 9-10 billion long-term funding target for the year.
Read the press release:
Transaction details
| Issuer: | Municipality Finance Plc (“Munifin”) |
| Ratings: | Aa1 / AA+ (both Stable) by Moody’s / S&P |
| Format: | RegS / 144A |
| Coupon: | 4.875% Fixed, S/A, 30/360, short first |
| Size: | USD1.25 billion |
| Pricing Date: | 5th October 2023 |
| Payment Date: | 13th October 2023 (T+5) |
| Maturity Date: | 13th January 2027 |
| Reoffer Spread: | SOFR MS + 38 bps | CT3 + 17.2bps |
| Joint Bookrunners: | BofA Securities, J.P. Morgan, RBC Capital Markets, TD Securities |
Comments from the Bookrunners
“Huge congratulations to the MuniFin team for strategically taking this week’s window despite the volatile backdrop. An excellent result for MuniFin’s second USD benchmark of 2023 as illustrated by the size and depth of the orderbook. Bank of America is extremely proud to have been a part of this transaction and successfully rounding out MuniFin’s benchmark funding for 2023.”
Robert Matthews, Vice President, SSA DCM, BofA Securities
“Congratulations to the MuniFin team for swiftly responding to market conditions, taking advantage of a clear issuance window to price a successful transaction! The orders over $3.3bn+ not only make this one of MuniFin’s largest orderbooks but also underline investors’ confidence in MuniFin’s name. This was apt to end the benchmark funding on a high note and we’re delighted to be involved!”
Matthieu Batard, Head of SSA Syndicate, J.P. Morgan
“Congratulations to the entire MuniFin team on a seamlessly executed new 3yr USD transaction. MuniFin were nimble in their approach to securing an efficient funding window this week which paid off with an incredible USD 3.3bn final orderbook from a wide variety of global USD investors.”
Paul Eustace, Managing Director, Global Co-Head of SSA and Head of Europe and Asia Syndicate, TD Securities
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
Lari Toppinen – Senior Analyst, Funding
+358 50 4079 300
Aaro Koski – Analyst, Funding
+358 45 1387 465