Stockholm (NordSIP) – Finnfund, Finland’s development finance institute and an impact investor, issued four tranches of green and sustainable bonds denominated in US dollars and euros, worth approximately €200 million in 7-year, 10-year, 15-year and 30-year securities. Jefferies GmbH acted as the sole arranger and lead manager on the bond issue.
The bond represents Finnfund’s first multi-tranche issuance and includes the longest ever maturity issued under its Sustainability Bond Framework established in September 2022. This transaction attracted interest from the highest quality pension funds and insurance companies.
The shortest maturity bond was a €28 million Sustainable Bond due in 2032 that pays a 3% coupon. Next, Finnfund also issued a US$50 million Green Bond due in 2035 that pays a 4.75% coupon. The third tranche was worth €60 million in Sustainable Bonds due in 2040 and pays a 3.5% coupon. The last tranche was a €65 million Sustainable Bond due 2055, which pays a 3.6% coupon.
“Successful issuance demonstrates strong interest towards Finnfund and credit investors’ commitment to support impact investing. All the investors in these tranches were international institutional investors from Asia and Europe. We are proud of Finnfund’s ability to acquire funds in different currencies and ultra-long maturities from the markets. Pricing was close to sovereign levels, again demonstrating Finnfund’s reputation as a sustainable investor,” says Finnfund´s Chief Financial Officer Olli Sinnemaa (Pictured).
The proceeds from the issue will be used as per the green and social project categories of Finnfund’s Sustainability Bond Framework to finance and/or refinance eligible green and social lending, equity investments, and mezzanine financing mainly targeting the objective of climate change mitigation and adaptation and/or improved living and health conditions for unserved groups.
Net proceeds will be allocated to eligible projects to mobilise debt capital to support Finnfund’s mission to generate lasting impact by investing in businesses that solve global development challenges.
“In addition, it contributes to Finnfund’s goal to foster sustainable development by providing investment opportunities for private investors. We have set a goal of increasing the proportion of private capital in our financing to at least 50 percent by 2030. Mobilising private capital is key to achieving the UN Sustainable Development Goals (SDGs) in developing countries, given that the UN estimates the financing gap at USD 2.5 trillion per year,” Sinnemaa adds.
Stockholm (NordSIP) – Finnfund, Finland’s development finance institute and an impact investor, issued four tranches of green and sustainable bonds denominated in US dollars and euros, worth approximately €200 million in 7-year, 10-year, 15-year and 30-year securities. Jefferies GmbH acted as the sole arranger and lead manager on the bond issue.
The bond represents Finnfund’s first multi-tranche issuance and includes the longest ever maturity issued under its Sustainability Bond Framework established in September 2022. This transaction attracted interest from the highest quality pension funds and insurance companies.
The shortest maturity bond was a €28 million Sustainable Bond due in 2032 that pays a 3% coupon. Next, Finnfund also issued a US$50 million Green Bond due in 2035 that pays a 4.75% coupon. The third tranche was worth €60 million in Sustainable Bonds due in 2040 and pays a 3.5% coupon. The last tranche was a €65 million Sustainable Bond due 2055, which pays a 3.6% coupon.
“Successful issuance demonstrates strong interest towards Finnfund and credit investors’ commitment to support impact investing. All the investors in these tranches were international institutional investors from Asia and Europe. We are proud of Finnfund’s ability to acquire funds in different currencies and ultra-long maturities from the markets. Pricing was close to sovereign levels, again demonstrating Finnfund’s reputation as a sustainable investor,” says Finnfund´s Chief Financial Officer Olli Sinnemaa (Pictured).
The proceeds from the issue will be used as per the green and social project categories of Finnfund’s Sustainability Bond Framework to finance and/or refinance eligible green and social lending, equity investments, and mezzanine financing mainly targeting the objective of climate change mitigation and adaptation and/or improved living and health conditions for unserved groups.
Net proceeds will be allocated to eligible projects to mobilise debt capital to support Finnfund’s mission to generate lasting impact by investing in businesses that solve global development challenges.
“In addition, it contributes to Finnfund’s goal to foster sustainable development by providing investment opportunities for private investors. We have set a goal of increasing the proportion of private capital in our financing to at least 50 percent by 2030. Mobilising private capital is key to achieving the UN Sustainable Development Goals (SDGs) in developing countries, given that the UN estimates the financing gap at USD 2.5 trillion per year,” Sinnemaa adds.
