MuniFin’s new USD 1 billion benchmark saw robust demand among global investors
On Tuesday, 25 March 2025, MuniFin, rated AA+, successfully returned to the USD market with a new USD 1 billion 5-year benchmark due 1 April 2030. The transaction saw strong investor demand in the competitive SSA market, leading to final pricing at SOFR mid-swap +46bps, 3bps tighter than initial pricing thoughts.
The mandate for the new benchmark was announced on Monday, 24 March, with initial pricing thoughts at SOFR mid-swap +49bps. Strong investor interest enabled books to officially open the following morning with a price guidance of SOFR MS +48bps. The orderbook continued to build momentum and with robust demand from high-quality accounts, the final orderbook closed later that afternoon in excess of USD 3.2 billion. The transaction was finally priced with a coupon of 4.250%.
“This shows the strong investor interest towards MuniFin bonds, despite a more volatile market backdrop and competing supply. With transactions like this, we can really see the benefits of our strategic approach and commitment to the USD benchmark market,” says Joakim Holmström, Executive Vice President, at MuniFin's Capital Markets and Sustainability team.
“Congratulations to the issuer and the funding team for delivering another powerful market message. A stellar execution by the MuniFin team which was rewarded with a very tight spread versus US Treasuries and other SSA peers. Despite the busy market window, the issuer was able to tighten the price by 3bps and consistently attract new high-quality investor demand, demonstrating little sensitivities from start to finish. This underscores the strong support MuniFin has garnered in the USD market over the years,” says Jamie Stirling, Global Head of DCM SSA at BNP Paribas.
The orderbook was well-diversified, with Central Banks and Official Institutions leading allocations at 59%, followed by Banks (31%) and Asset/Fund Managers (10%). Geographically, the Americas took the largest share at 42%, followed by Europe (26%), Africa & Middle East (12%), Nordics (10%), and Asia Pacific (10%).
This successful issuance underscores MuniFin's strong market presence and continued ability to secure high-quality demand across a global investor base. After this transaction, MuniFin has reached roughly half of its EUR 9 billion long-term funding target for the year.
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