The announcement for the new November 2024 EUR benchmark was announced to the market late morning in London at 11:00 UKT on the 7th of January, with books officially opening the following morning at 8:15 UKT.
Demand for this deal was extensive and the orderbook started to build up quickly. The first update was provided to the market at 9:08 UKT with books in excess of EUR 1.8bn and guidance revised to MS –4 bps area. The final spread was set shortly after at MS –5 bps with final books finishing at EUR 3.9bn after closing at 11:05 UKT.
This transaction attracted a high quality group of investors and the composition of allocations was as follows: Official Institutions (47%), Banks (33%), Asset Managers (18%) and Insurance / Pensions Funds (2%).
The orderbook was very granular with diversified allocation to different geographical locations as follows: Benelux (24%), Nordics (20%), France (14%), Asia (7%), Other Europe (25%) and Other (10%).
Comments on the transaction
– An impressive outcome for MuniFin, refreshing their EUR curve with a new short 5 year benchmark. With a very high quality orderbook, pricing at at the tight end of guidance and with minimal new issue premium, the deal attracted MuniFin’s largest order book to date underscoring the extent of MuniFin’s investor following. Danske Bank is delighted to have supported MuniFin on this important transaction.
Gustav Landström, Global Head of SSA Origination Danske Bank, who acted as a joint lead manager in the transaction
– An outstanding result for MuniFin with their largest ever euro Benchmark. They showed great initiative to be the first Nordic SSA to come to the EUR market and were rewarded with an exceptionally strong quality orderbook amidst a very heavy supply backdrop
Adrien De Naurois, Managing Director, BofA Securities
– This impressive result from MuniFin is due to the agility to take hold of a strong window following the reopening of the market in 2020. The successful strategy of offering investors an attractive maturity and pricing level exceeded expectations. This is highly evident when looking at the record size final orderbook and notable quality of investors that took part. Nabil Menai, Managing Director, Global Head of SSA DCM at Natixis, who acted as a joint lead manager in the transaction
– MuniFin returned to the Euro market with a smashing transaction. Despite the geopolitical unrest, which could have hurt investor sentiment, the issuer assertively took the window. The heavy supply from sovereign issuers did not distract investors from the quality of the MuniFin offering and they got a record orderbook. It allowed a pricing very close to fair value and a distribution of the highest quality.
Olivier Vion, Head of SSA DCM and Syndicate, Société Générale
Details of the transaction
|Issue size||EUR 1.5 billion|
|Re-offer vs mid-swaps||-5 bps|
|Lead managers||Bank of America, Danske Bank, Natixis, Société Générale|
Joakim Holmström, Head of Capital Markets, tel. +358 9 6803 5674
Antti Kontio, Head of Funding, tel. +358 9 6803 5634