Finnvera issued a EUR 1 billion bond

Finnvera issued a EUR 1 billion bond on 22 May 2024. The long 5-year transaction maturing in August 2029 was Finnvera’s first benchmark bond issue this year and first EUR benchmark since 2022.

Final order book was more than EUR 2.5 billion, from nearly 70 investors. The investor base was very broad. Main buyers were from bank treasuries which took 50% of final allocations. This was followed by the central bank community 38% and asset managers 8%. Geographically, most of the investors came from Central Europe and the Nordic countries.

“We are satisfied with the successful outcome and return to the busy SSA EUR market. The demand, especially from the high-quality accounts was strong. It is good to see that investors have strong confidence in Finnvera's creditworthiness and the Finnish government's guarantee even in a crowded market with competing supply in the same narrow window of opportunity. Active investor relations and previous successful issuances produced a good result – we want to thank all our investors and banks for that", says Finnvera's Funding Manager Jarno Kosonen.

Joint lead managers were Citi, DZ Bank, Nordea ja TD Securities.

The bond was issued under Finnvera’s EMTN (Euro Medium Term Note) programme. Bonds issued under the EUR 15 billion programme are guaranteed by the Republic of Finland and their rating corresponds to the rating assigned to the Republic of Finland for its long-term liabilities. The rating given by Moody’s to Finnvera’s programme is Aa1 and that given by Fitch is AA+.

Since the beginning of 2022, short-term funding has taken place under the EUR 3 billion ECP debt security programme which is also guaranteed by the Republic of Finland. 

Finnvera uses the acquired funds for financing export credits. The goal of the funding is making competitive financing available for the customers of Finnish export companies. The arrangement of buyer financing for foreign buyers is often a prerequisite for closing an export deal. Consequently, funding increases the impact of Finnvera’s financing operations and makes transactions possible for Finnish export companies.

Further information:

Jarno Kosonen, Funding Manager, Finnvera plc, tel. +358 50 386 1754