Municipality Finance €350 million 4.5% issue of additional Tier 1 instruments

Overview:

• Municipality Finance issued €350 million of perpetual fixed rate resettable 4.5% Additional Tier 1 (AT1) securities, listed on the Irish Stock Exchange.
• The company has the first option to call the securities for six and a half years after the issue date.
• Barclays Bank, BNP Paribas, Goldman Sachs International and Nordea Bank Danmark served as joint lead managers for the offering.
• Municipality Finance, a credit institution that provides financial services for municipalities and central government-subsidised housing production in Finland, is the first sovereign issuer of a publicly listed AT1 instrument. It was also given a BBB+ rating from Standard & Poor's, the highest ever rating for an AT1 instrument.

Wai Yee Tsang - Journalist