Municipality Finance Plc
Stock exchange release
4 May 2016 at 11.30 a.m. (EET)
The ECB granted Municipality Finance permission to classify its shares as CET1 instruments
The Annual General Meeting of Municipality Finance Plc (“MuniFin”), held on 22 March 2016, decided to amend the company’s Articles of Association by removing the company’s right to redeem its own shares in order to meet the requirements of Regulation (EU) No 575/2013 (Capital Requirements Regulation) for Common Equity Tier 1 instruments. After the decision of the AGM, MuniFin applied for an approval from the European Central Bank (“ECB”) for inclusion of the shares into the company’s CET1 capital. On 3 May 2016, the ECB granted MuniFin permission to classify all of its existing share capital instruments as Common Equity Tier 1 instruments.
MUNICIPALITY FINANCE PLC
Executive Vice President, Administration and Legal Affairs
tel. +358 50 3686 860
MuniFin’s (Municipality Finance Plc) mission is to ensure competitive financial services for its customers in all market conditions. MuniFin’s balance sheet totals nearly EUR 34 billion, making it the third largest credit institution in Finland and an integral part of the Finnish public economy.
The company is owned by Finnish municipalities, the public sector pension fund Keva and the Republic of Finland. Its customers are Finnish municipalities, municipal federations, municipally controlled companies and non-profit housing corporations. Importantly, a significant portion of lending is used for socially responsible projects such as building hospitals, healthcare centers, schools, day care centers and homes for the elderly.
MuniFin’s funding is primarily obtained through the international capital markets. The funding is guaranteed by the Municipal Guarantee Board.
The Municipality Finance Group also includes the subsidiary company, Financial Advisory Services Inspira Ltd.