Commentary & Deal Flow

Size set at: 10yr: Min CHF 115m
IPTs: 10yr: SARON MS+26a

• Issuer: Municipality Finance Plc (Ticker: KUNTA)
• Issuer Domicile: Finland
• Domestic / Foreign: Foreign
• Format: Public Fixed-Rate Notes
• Ranking: Senior unsecured
• Issuer Rating: Aa1 (stable) by Moody’s / AA+ (negative) by S&P
• Instrument Rating (exp): Aa1 by Moody’s / AA+ by S&P
• Issue Size: Min. CHF 115m
• Coupon: 0.788% p.a. (indicative) (30/360, following unadj.)
• Maturity: 10 years (14-Jul-26 to 14-Jul-36)
• Spread/Yield: SARON MS +26.0 area // YTM 0.7875% area // Govt + 48.5 area
• Lead Manager(s): Deutsche Bank
• SNB Repo-eligibility: At the discretion of the SNB, expected yes (HQLA Level 1)
• Documentation: Off the Issuer’s EUR 50bn EMTN Programme dated 07-May-26
• FinSA Prospectus: Delayed prospectus approval in accordance with Article 51(2) FinSA
• Governing Law: English law
• Covenants: PP, NP, XD
• SIX Listing: 10-Jul-26
• Use of Proceeds: The proceeds of the issue of the Notes will be used by the Issuer in accordance with the Municipal Guarantee Board Act, as amended. In addition, an amount equal to the proceeds of the issue of the Notes will be used and earmarked in accordance with the Issuer's Green Bond Framework dated August 2025.
• Denomination: CHF 5,000 and multiples thereof
• Selling Restrictions: As described in detail in the Issuer’s Documentation. In particular, United States, US persons, UK, Japan, Hong Kong, France, Belgium, Singapore, Canada, Italy, in accordance with the Information Memorandum. RegS TEFRA D Rules apply, no communications with or into the US.
• Target Market: Target Market as defined by the manufacturer domiciled in the EEA: Eligible counterparties and professional clients (all channels for distribution), subject to applicable selling restrictions. Public Offering in Switzerland only.
• Timing: Books to close at 11.40am CET, pricing to follow shortly thereafter