Finland. Municipal Guarantee Board
| Date of agreement: | 10 May 2024 |
|---|---|
| Country: | Finland |
| Customer: | Municipal Guarantee Board |
| Amount in EUR: | EUR 200 million |
| Maturity: | 5 years |
Project
The loan has been provided for the Finnish Municipality Guarantee Board (MGB) to extend a EUR 200 million stand-by revolving credit facility for an additional five years. The facility will support the municipal finance ecosystem in Finland.
The MGB’s purpose is to safeguard and develop the joint funding of municipalities. To fulfil its purpose, MGB can grant guarantees for the funding of the publicly owned Municipality Finance Plc, or MuniFin, one of Finland’s largest credit institutions that is specialised in the financing and financial risk management of the public sector. The funding shall be channelled in accordance with the MGB Act such as for investments in social housing, education, healthcare and care for the elderly.
Fulfilment of NIB's mandate
MuniFin and the MGB are key pillars in financing Finnish local and regional governments, and robust institutions supported by highly creditworthy borrowers. NIB’s stand-by credit facility adds value by increasing MGB’s flexibility and by improving the quality of its liquidity profile. The facility supports the credit profile of the MGB and is expected to indirectly support municipal investments in Finland.
Sustainability summary
No negative sustainability issues have been identified.
