By Angela McDaniels
Tacoma, Wash., Sept. 26 – Municipality Finance plc (Aa1/AA+) priced €500 million of 0.75% 10-year green bonds at 99.724 to yield 0.779% on Tuesday, according to a market source.
The bonds priced 7 basis points below mid-swaps.
The bookrunners were BNP Paribas, Credit Agricole CIB, DZ Bank and Nordea.
The bonds feature FCA/ICMA stabilization and will be listed on the London Stock Exchange.
The source said the proceeds of the bond will be used in accordance with the Municipal Guarantee Board Act and, in addition, used and earmarked in accordance with MuniFin’s green bonds framework.
This is the company’s second green bond issue and the first one in euros, according to a company news release.
At €2.8 billion, the book was more than five times oversubscribed.
The company said Germany made up 24% of the investor base, followed by Nordics at 22%, France at 13%, Asia at 12% and other Europe at 29%. Banks were the largest investor group at 44%, followed by insurance/pension funds at 25%, central banks and official institutions at 20% and asset managers at 10%.
“The decision to enter the green bonds market was a strategic one for MuniFin. These bonds can help MuniFin to expand its international investor base while at the same time allowing MuniFin to accelerate the sustainable investments the Finnish municipal sector makes,” the company said in the news release.
The company said it intends to continue issuing green bonds on a regular basis. The size of the bonds and issuance frequency will depend on the demand for green financing.
MuniFin is a Helsinki, Finland-based credit institution that provides funding for the public sector in Finland.
| Issuer: | Municipality Finance plc
|
| Issue: | Green bonds
|
| Amount: | €500 million
|
| Maturity: | Sept. 7, 2027
|
| Bookrunners: | BNP Paribas, Credit Agricole CIB, DZ Bank and Nordea
|
| Coupon: | 0.75%
|
| Price: | 99.724
|
| Yield: | 0.779%
|
| Spread: | Mid-swaps minus 7 bps
|
| Pricing date: | Sept. 26
|
| Settlement date: | Oct. 3
|
| Issuer ratings: | Moody’s: Aa1
|
| S&P: AA+
|
| Distribution: | Regulation S
|
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