Kuntarahoitus Oyj, variously branded Municipal Finance[1]: 13 or Municipality Finance[2] or MuniFin[3] in English, is a public financial institution in Finland and the country's third-largest credit institution by total assets,[4]: 3 behind Nordea and OP.
Kuntarahoitus plays a central role in financing local government in Finland. It is the first Finnish green and social bond issuer.[5] Its customers are Finnish municipalities, municipal associations, municipal-owned enterprises, and public-benefit housing companies that engage in state-supported social housing production and are approved by the Housing Finance and Development Centre of Finland (ARA). As of end-2022, it had €48 billion in total assets.[4]: 70
Kuntarahoitus has been a member of the United Nations Global Compact since October 2020.[6]
Overview
editKuntarahoitus was established in 2001 by merger of two predecessor entities, the so-called the old Kuntarahoitus Oy (est. 1990) and Kuntien Asuntoluotto Oyj. As of the mid-2010s, it financed around 80 percent of municipal debt in Finland.[7]
In late 2015, Kuntarahoitus has been designated as a Significant Institution under European Banking Supervision, and has been subsequently supervised by the European Central Bank.[8]
Kuntarahoitus has approximately 284 shareholders, including municipalities (53 percent in aggregate), the national pension agency Keva (31 percent), and the Finnish government (16 percent).[5] It is mainly funded by securities issuance, for which it benefits from the same rating as the Finnish government thanks to a guarantee provided by the Municipal Guarantee Board (MGB, Finnish: Kuntien Takauseskus).
In both 2021 and 2022, Kuntarahoitus won the municipality green bond of the year award from Environmental Finance, a specialized publication.[9]
See also
editNotes
edit- ^ "Finland: Financial System Stability Assessment" (PDF), International Monetary Fund, December 2016
- ^ "Municipality Finance plc". Moody's.
- ^ Addison Gong (26 January 2024). "Early moves pay off as MuniFin completes 25% of target". Global Capital.
- ^ a b Pillar III Disclosure Report 2022 (PDF), MuniFin, 7 March 2023
- ^ a b "Kuntarahoitus". Triodos Investment management.
- ^ "Kuntarahoitus Oyj / Municipality Finance Plc". United Nations Global Compact.
- ^ "Finland" (PDF), United Cities and Local Governments, October 2016
- ^ "List of supervised entities / Cut-off date for significance decisions: 30 December 2015" (PDF). European Central Bank.
- ^ "Environmental Finance's Bond Awards 2022: Green bond of the year - local authority/municipality: MuniFin". Environmental Finance.
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