Environmental Finance's Bond Awards 2022

Green bond of the year - local authority/municipality: MuniFin

Finnish credit institution Municipality Finance (MuniFin) won municipality green bond of the year for the second year running after pricing its inaugural green bond in the sterling market, raising £250 million ($330 million).

The transaction enabled the issuer to expand its investor universe and drive the development of the green bond market in UK, MuniFin said. It calculates that 40% of the bonds were bought by ESG investors.

"The transaction was oversubscribed, with final books closing in excess of £300 million, attracting a high percentage of ESG-focused investors, a result of working closely with the ESG analyst community and deepening relationships," MuniFin says.

Participation was led by central banks and official institutions (44%) followed by asset managers (43%). Geographic distribution of investors was mostly in Europe excluding the Nordics (54%), followed by Asia Pacific (34%).

The bond proceeds were to be used to finance projects that promote the transition to a low-carbon economy in seven categories: sustainable buildings; sustainable public transportation; water management; renewable energy; energy efficiency; waste management; and environmental management.

MuniFin is the only Finnish institution to specialise financing the Finnish public sector. Its capital is offered exclusively to Finnish municipalities, their majority-owned companies, and non-profit housing companies.

Deal highlights box:

Lead managers: Bank of America, Nomura and TD Securities
Coupon: 0.875%
Pricing date: 26 October, 2021
Settlement date: 2 November, 2021
Maturity date: 16 December, 2024