| Invested through |
|
|---|---|
| Asset Classes | Impact bonds |
| Impact strategy | Impact Equities and Bonds |
| ISIN code | XS2023679843, XS2480922389 |
| Industry group | banks |
| Aligned with SDGs |
Kuntarahoitus (or MuniFin) is the leading provider of financial services to Finland's local government and public housing sectors. It is 100% public sector-owned: 53% by municipalities, 31% Keva (public pension fund) and 16% Republic of Finland. It only finances to the Finnish public sector and public housing sector, its main customers include municipalities, municipality-owned companies and public housing companies. MuniFin is one of the most active Finnish bond issuers in international capital markets and the first Finnish green and social bond issuer.
Investment rationale
MuniFin is committed to understanding, monitoring and managing the social, environmental and economic impact of its own activities and the financing offered to its customers in order to contribute to the Finnish society’s wider goals of sustainable development. This commitment is integrated in the core values and mission of MuniFin, as well as demonstrated through all operations and policies.
The company reports at a portfolio level, so it’s not possible to tell the exact impact on a bond level. MuniFin discloses, on the portfolio level, the total outstanding amount, annual energy saved, annual CO2 emission avoided, annual amount of treated wastewater, annual production of renewable energy. Projects include sustainable buildings, sustainable public transportation, water and wastewater management, renewable energy and energy efficiency.
63% of the revenues of both green bonds is aligned with the Resource Transition and 37% with the Energy Transition. "The contribution to the Resource Transition comes from 62% of proceeds allocated to the impact objective Environmentally Sustainable Management of Living Natural Resources & Land Use , and 2% of proceeds allocated to Pollution Prevention & Control. The contribution to the Energy Transition comes from 28% of proceeds allocated to the impact objective Terrestrial & Aquatic Biodiversity Conservation, and 9% of proceeds allocated to Renewable Energy.