Municipality Finance won the “Private Placement Powerhouse 2008” award and
commendations at the January MTN-i award ceremony in London.
The MTN-i Awards for the international finance sector were given out for the
sixth time. With nominees for the awards selected on the basis of interviews
and polls from among active issuers operating on international markets, in
deciding the 2008 winners, MTN-i placed a special emphasis on the nominees'
ability to react to the new challenges created by the finance sector crisis.
One criterion for awarding Municipality Finance was its speed, flexibility and
reliability in reacting to the needs of investors in the extremely difficult
market situation. It was also noted that Municipality Finance was able to cover
its funding for 2008 as a whole (EUR 4.6 billion) without major public
benchmark issues by issuing primarily tailor-made MTNs while nearly doubling
the number of placements arranged during the year to 335. In addition, the
MTN-i underlined that Municipality Finance was also able to expand both its
investor base as well as its selection of structures and currencies.
A strong performer throughout the year, Municipality Finance stood out from the
other issuers by taking an active role in the changing market at the time when
Lehman Brothers' troubles were uncovered. The market interpreted this as a sign
of Municipality Finance's ability to attract investors also under extremely
demanding market circumstances. The bankruptcy of Lehman Brothers had a very
limited direct effect on the operations of Municipality Finance, a “lead” to
competitors the company successfully exploited. At the end of September,
Municipality Finance successfully placed one of the most significant MTNs of
the last part of the year, a note issued through Commerzbank that had a nominal
value of EUR 200 million and a maturity of six years. The underlying instrument
was the Eurostoxx 50 index structure. This issue was granted the “Landmark
Deal” commendation at the award ceremony.
Bank dealers have praised Municipality Finance for its flexibility and
alertness. The feedback from the market earned Municipality Finance a separate
“Rapid Response” commendation at the event.
“This recognition is a fine award for the long-term work carried out together
by the entire organisation at Municipality Finance to raise funding. We stand
at a good position to continue our work” notes Esa Kallio, Executive Vice
President, Customer Finance and Funding.
Municipality Finance Plc
Further information:
Esa Kallio, Executive Vice President, Deputy to CEO,
+358 (0)9 6803 6231, +358 (0)50 337 7953
Timo Ruotsalainen, Head of International Funding,
+358 (0)9 6803 5685, +358 (0)50 386 1753
Municipality Finance Plc is a local government credit institution owned by
Finnish municipalities and the Local Government Pensions Institution and is the
parent company of the Municipal Finance Group. The company's mission is to
ensure top-value financial services for the municipal sector, to be efficient
and to grow profitably. The company's balance sheet totalled EUR 9,609 million
on June 30, 2008. The company offers market-based funding to municipalities and
municipal federations, to municipality-controlled entities and non-profit
housing corporations. The company's funding, which is guaranteed by the
Municipal Guarantee Board is obtained from international capital markets and
domestic investors. Funding provided by the company goes into social and
non-profit service projects, such as schools, housing and hospitals. The Group
includes Financial Advisory Services Inspira Ltd, which offers financial
advisory services for investments, financial and asset arrangements, asset
management and various analysis services.
