Kuntarahoitus expands bond program with 1 billion SEK issuance

Published 02/05/2025, 08:06
Kuntarahoitus expands bond program with 1 billion SEK issuance

HELSINKI - Kuntarahoitus Oyj, one of Finland’s largest credit institutions, has announced the issuance of an additional 1 billion Swedish krona (SEK) as part of its existing bond program. This move, scheduled for Tuesday, increases the total size of the bond to 3.5 billion SEK.

The newly issued bond is an addition to the one launched on February 21, 2025, and comes with an annual interest rate pegged to the three-month Stockholm Interbank Offered Rate (Stibor) plus 150 basis points. The bond is set to mature on February 21, 2028.

This issuance falls under Kuntarahoitus’s 50 billion euro bond program. The prospectus, supplement, and final terms of the bond are available in English on the company’s website.

Kuntarahoitus has applied for the bond to be listed for public trading on the Nasdaq Helsinki Oy exchange, with trading expected to commence on the issuance date.

Skandinaviska Enskilda Banken AB (publ) is arranging the issuance. Kuntarahoitus serves Finnish municipalities, municipal federations, wellbeing services regions, joint municipal authorities, and state-subsidized housing production. Its customers finance environmentally sustainable and socially responsible projects, such as public transportation, sustainable construction, hospitals, daycares, schools, and housing for special groups.

The organization’s funding is backed by the Municipal Guarantee Board, and it operates in a global market, despite its domestic client base. Additionally, Kuntarahoitus is noted for being an active issuer of bonds on international capital markets and the first Finnish issuer of green and social bonds.

The information provided is based on a press release statement.

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