Strong demand for MuniFin’s longest-ever EUR benchmark

On Tuesday, 16th January 2018, MuniFin issued a new EUR 500 million 15-year fixed rate benchmark, which offers a 1.250% coupon, equivalent to mid-swaps -4 basis points.

Investor demand was very strong from the outset. The high quality, well diversified and granular investor demand allowed MuniFin to tighten the guidance by 4bps with little price sensitivity. 75 minutes after the announcement books closed in excess of EUR 1.9 billion.

In total, 76 investors participated in the transaction. The order book was dominated by investors from Germany (44.1%) and France (14.4%), followed by the Swiss (8.9%), Nordics (7.8%), Benelux (6.9%), the rest of Europe (6.1%), Asia (6.0%), the UK (5.7%) and the Middle East (0.1%).

Central Banks & Official Institutions (39.6%) represented the largest share of allocations, followed by Asset Manager (20.3%), Insurance companies & Pension Funds (20.0%) and Banks (17.8%).

“We are extremely happy with the strong result. We started issuing EUR benchmark notes in 2016 and have been able to build up a liquid curve, which now consists of four reference points. It is very nice to see that there is strong demand for high-quality issuers like MuniFin. In addition, this is the longest benchmark we have issued”, says Joakim Holmström, Head of Funding.

“With this bond, MuniFin successfully extended their EUR curve. After a warmly welcomed EUR green bond last year, the strong and well oversubscribed book showed that EUR investors are also extremely interested in MuniFin’s longer dated paper”, says Crispijn Kooijmans, Head of Public Sector Bond Origination at Rabobank, who acted as a joint lead manager in the transaction.

Details of the transaction:

Issue Size:                                     EUR 500 million

Payment Date:                            23 January 2018

Maturity Date:                            23 February 2033

Coupon:                                         1.250 % Fixed coupon

Re-offer Price:                            99.905 %

Re-offer Yield:                            1.257 %

Re-offer vs Mid Swaps:           – 4 bps

Lead Managers:                          Barclays, Citi, Rabobank, SG CIB

More information:

Joakim Holmström, Head of Funding

joakim.holmstrom(at)munifin.fi

+358 50 444 3638