Kuntarahoitus adds €50 million to benchmark bond under debt program

Published 03/09/2025, 08:10
Kuntarahoitus adds €50 million to benchmark bond under debt program

HELSINKI - Finnish credit institution Kuntarahoitus Oyj (Municipality Finance) announced Wednesday it will issue a €50 million tap to a benchmark bond originally launched on August 29, 2024.

The tap issue, scheduled for Thursday, will increase the total size of the bond to €1.2 billion. The bond carries a 2.5% annual interest rate and matures on August 29, 2029.

The issuance is part of Kuntarahoitus’s €50 billion debt program. The company has applied for the tap issue to be admitted to public trading on the Nasdaq Helsinki exchange, with trading expected to begin Thursday.

Skandinaviska Enskilda Banken AB (publ) is serving as the lead manager for the transaction.

Kuntarahoitus, one of Finland’s largest credit institutions with a balance sheet exceeding €55 billion, is owned by Finnish municipalities, Keva (Finland’s largest pension fund), and the Finnish state. The company provides financing solutions to municipalities, joint municipal authorities, wellbeing services counties, their controlled entities, and state-subsidized housing production.

The company is an active issuer of bonds in international capital markets and was the first Finnish issuer of green and social bonds, according to the press release statement.

The benchmark bond and its fungible notes are already listed on the Nasdaq Helsinki exchange.

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