Kuntarahoitus issues SEK 1 billion bond under existing program

Published 20/05/2025, 08:06
Kuntarahoitus issues SEK 1 billion bond under existing program

HELSINKI - Kuntarahoitus Oyj, one of Finland’s largest credit institutions, has announced the issuance of an additional SEK 1 billion (Swedish Krona) bond under its existing EUR 50 billion bond program. The new issuance, scheduled for May 21, 2025, is an addition to a bond initially released on February 21, 2025, bringing the total size to SEK 4.5 billion.

The bond, with a maturity date of February 21, 2028, carries an annual interest rate based on the three-month Stibor plus 150 basis points. Kuntarahoitus has applied for the bond to be listed for public trading on the Nasdaq Helsinki Oy stock exchange, with trading expected to commence on the day of the issuance.

Skandinaviska Enskilda Banken AB (publ) is the organizer for this bond issue. The original bond and subsequent interchangeable issues are already listed for trading on the Nasdaq Helsinki Oy exchange.

Kuntarahoitus specializes in providing financing solutions for environmentally sustainable and socially responsible projects, such as public transportation, sustainable construction, healthcare facilities, educational institutions, and housing for special groups. Its clientele consists primarily of Finnish municipalities, municipal federations, welfare areas, welfare federations, and state-supported housing production.

The company’s activities extend beyond domestic borders, being an active issuer of municipal bonds in international capital markets and the first in Finland to issue green and social bonds. The fundraising efforts of Kuntarahoitus are backed by the Municipal Guarantee Board’s guarantee.

This financial move is based on a press release statement from Kuntarahoitus and is intended to support the company’s mission to enable better futures through responsible financing. The complete terms of the bond and the program’s prospectus are available in English on the company’s website.

Investors interested in the public trading of this bond can expect it to be available on the Nasdaq Helsinki Oy exchange starting May 21, 2025.

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