LONDON, Sept 28 (Reuters) - Finland’s Municipality Finance (MuniFin) successfully issued a $500 million green bond this week, the country’s first green bond, the bank said on Wednesday.
The five-year bond was over-subscribed and pays a fixed coupon of 1.375 percent. Proceeds from the transaction will be used to finance environmentally friendly projects in the public sector in Finland.
“It was a strategic decision for MuniFin to access the green bond markets. We wanted to offer a new product to the capital markets and further expand our investor base,” Esa Kallio, executive vice president, head of capital markets, at MuniFin said in a statement.
“MuniFin’s lending portfolio carries an enormous potential for green investments. In the future we intend to become a frequent green bond issuer,” Kallio added.
Credit institution MuniFin is 100 percent owned by the Finnish public sector and lends only to the Finnish public sector and the public housing sector. (Reporting by Nina Chestney; Editing by Adrian Croft)
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