Environmental Finance revealed the winners of the annual Green Bond Awards on March 28. MuniFin was the winner in two categories with its EUR 500 million green bond issued last September. MuniFin was the winner in the categories of Green Bond of the Year (SSA) and Biggest issuer (local authority). The winners were not decided by Environmental Finance but by a panel of judges made up of some of the biggest green bond investors.
The most sought after bond in the history of MuniFin
The second-ever green bond in the history of MuniFin, set at EUR 500 million and issued in September, was oversubscribed six times within the first hour.
The transaction was the most sought after bond in the history of MuniFin, and the bond was very tightly priced. The loan continues to be in demand in the secondary markets, and it has had a positive effect on the valuation level of all MuniFin’s euro-denominated benchmark bonds.
2017 saw also the issue of MuniFin’s inaugural privately placed green mond. The subscriber of the AUD-denominated private placement was the Japanese life insurance company Fukoku Life.
Green finance, earmarked for environmental projects, was first launched for MuniFin’s customers in 2016. In the same year, MuniFin issued its first green bond, subsequently also the first green bond issued by a Finnish credit institution.
The customer demand for green finance has been a positive surprise. The green finance project portfolio reached a milestone by exceeding one billion euros at the turn of the year.
The effectiveness of a green project is especially evaluated through energy-efficiency and reduced carbon dioxide emissions, but indirect effects are also taken into account. A more detailed evaluation of the effects of green financing is available in separate reports, published annually.