Kuntarahoitus boosts bond program with €175 million addition

Published 04/29/2025, 04:06 AM
Kuntarahoitus boosts bond program with €175 million addition

HELSINKI - Finnish financial services provider Kuntarahoitus Oyj has announced the issuance of a €175 million addition to an existing reference loan, which is part of its €50 billion bond program. The new issue, dated for April 30, 2025, increases the total amount of the loan to €1.65 billion.

The original reference loan, issued on April 26, 2023, has a maturity date of July 29, 2030, and carries an annual interest rate of 3.125%. This latest issuance is expected to start trading publicly on the Nasdaq Helsinki Oy stock exchange on the day of the issue.

Kuntarahoitus has a significant presence in Finland’s credit institution sector, with a balance sheet exceeding €53 billion. The company’s client base consists of Finnish municipalities, municipal federations, wellbeing services counties, joint municipal authorities, state-subsidized housing production entities, and other organizations under their control. These clients utilize financing solutions provided by Kuntarahoitus to fund projects that promote environmental sustainability and social responsibility, such as public transportation, sustainable construction, hospitals, health centers, daycares, schools, and housing for special groups.

The company, owned by municipalities, Keva, and the Finnish government, is a prominent issuer of municipal bonds in international capital markets and the first Finnish entity to issue green and social bonds.

J.P. Morgan SE is the lead manager for this bond issuance. The prospectus for the bond program, along with its supplement and the final terms of the loan, are available in English on the company’s website.

The information for this article is based on a press release statement. The release emphasizes that the information contained is not intended for publication or distribution in any jurisdiction where such action would be unlawful, nor does it constitute an offer to sell or a solicitation of an offer to buy any securities.

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