Kuntarahoitus to issue €50 million tap of benchmark bond

Published 03/09/2025, 08:06
Kuntarahoitus to issue €50 million tap of benchmark bond

HELSINKI - Kuntarahoitus Oyj (Municipality Finance) announced Wednesday it will issue a €50 million tap of its existing benchmark bond on September 4, 2025, increasing the total size of the bond to €1.4 billion.

The bond, originally issued on January 28, 2025, carries a 2.625% annual interest rate and matures on December 14, 2029. The issuance falls under the company’s €50 billion Euro Medium Term Note (EMTN) program.

RBC Capital Markets (Europe) GmbH will serve as the lead manager for the transaction. Kuntarahoitus has applied for the tap issuance to be admitted to trading on the official list of Nasdaq Helsinki, with trading expected to commence on September 4.

Kuntarahoitus ranks among Finland’s largest credit institutions with a balance sheet exceeding €55 billion. The company is owned by Finnish municipalities, Keva (Finland’s largest pension fund), and the Finnish state.

The organization provides financing to Finnish municipalities, joint municipal authorities, wellbeing services counties, and state-subsidized housing production. These funds support environmentally sustainable and socially responsible projects including public transportation initiatives, sustainable construction, hospitals, healthcare centers, daycare facilities, schools, and special needs housing.

While Kuntarahoitus serves a domestic customer base, it operates globally in capital markets as an active Finnish bond issuer. The company’s funding is guaranteed by the Municipal Guarantee Board.

This information is based on a company press release statement.

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