MuniFin Green Finance and Liquidity Portfolio Evaluation
MuniFin
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Appendix 21
Inaugural EUR Social bond
MuniFin issued its inaugural EUR 500 million 15-year Social bond on 3 September
2020. The bond is the first Nordic and Finnish Social bond issued in the SSA category.
MuniFin will use the proceeds of the Social bond to finance social housing, welfare and
education in accordance with its Social bonds framework. MuniFin aims to encourage
investments that have a notably strong impact and bring about wide-ranging social
benefits.
• Ahead of the transaction MuniFin held a GIC as well as a series of one-on-one investor
calls to update investors ahead of the inaugural transaction.
•
The benchmark was almost four times oversubscribed in just 2.5 hours, which is a
testimony of increasing investor interest in sustainable products. Books were opened on
3 September with price guidance at MS+12bps area and as a result of strong investor
demand spread was set at MS+9bps with final orders in excess of EUR 1.9 billion.
• More than 91% of the bond was distributed to European investors. Almost one third of
the bond was allocated to Germany, Austria and Switzerland and nearly one fifth to
Nordic countries. Asset managers took the largest share by representing almost half of
the investors, with significant demand from SRI investors.
The note has a final maturity of 10 September 2035 and pays a fixed coupon of 0.05 %
annually, which equates to 9 bps over the 15-year mid swap rate. This is equivalent to a
33.6 bps spread over the DBR 0% May 2035. The bond will be listed on the Sustainable
Debt Market at Nasdaq Helsinki.
The Joint Lead managers of the transaction were BNP Paribas, Credit Agricole CIB, DZ
Bank and SEB.
Insurance/Pension Others
funds
8%
Banks
15 %
Central Banks /
Official
Institutions
25%
Asia Pacific
9%
France
15%
Other Europe
9%
3%
Asset
Managers
49 %
Germany/Austria/
Switzerland
30%
Nordics
17 %
Benelux
20 %
MuniFin
Social
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