Kuntarahoitus issues NOK 2 billion bond under existing program

Published 05/06/2025, 08:10
Kuntarahoitus issues NOK 2 billion bond under existing program

HELSINKI - Finnish financial institution Kuntarahoitus Oyj has announced the issuance of a 2 billion Norwegian krone (NOK) bond, slated for public trading commencement on Monday. The bond, with a maturity date of January 6, 2031, will carry an annual interest rate of 4.125%.

This issuance is part of the company’s existing 50 billion euro bond program. Detailed information regarding the program, including the prospectus, supplement, and the bond’s final terms, is available in English on the company’s website.

Kuntarahoitus has applied for the bond to be listed on the Nasdaq Helsinki Oy exchange, with trading expected to begin on the day following the issue date. DNB Bank ASA is the lead manager for this issuance.

As one of Finland’s largest credit institutions, Kuntarahoitus is owned by Finnish municipalities, the public pension fund Keva, and the Finnish state. The group’s balance sheet exceeds 53 billion euros. Kuntarahoitus services Finnish municipalities and joint municipal authorities, welfare regions, welfare consortia, entities under their control, and state-subsidized housing production.

The company’s clients finance environmentally sustainable and socially responsible projects such as public transportation, sustainable construction, hospitals, health centers, daycares, schools, and housing for special groups. Although Kuntarahoitus primarily serves domestic clients, it operates within a global context and is an active issuer of bonds on the international capital markets.

Kuntarahoitus has the distinction of being the first Finnish issuer of green and social bonds. The funds raised through these bonds are secured by the Municipal Guarantee Board.

The information provided is based on a press release statement and is intended for factual reporting only.

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