Kuntarahoitus Oyj products, services and reviews

About Kuntarahoitus Oyj

Kuntarahoitus Oyj (Municipality Finance Plc, “MuniFin”) is a Finnish credit institution focused on financing the domestic public sector and government-subsidized housing. Its core clients are municipalities, joint municipal authorities, wellbeing services counties and non-profit housing companies operating under national housing policies. The company does not take deposits from the public; it funds itself in international and domestic capital markets through benchmark and private placements under established debt programmes, including frequent issuance in major currencies. MuniFin’s funding is guaranteed by the Municipal Guarantee Board, a public-law entity whose members are Finnish municipalities and wellbeing services counties, and the institution is supervised by the Finnish Financial Supervisory Authority within the EU banking regulatory framework. Lending consists primarily of long-term loans and leasing for public investments such as schools, healthcare facilities, infrastructure and rolling stock, complemented by short-term financing solutions; the loan book is characterized by low credit risk given borrowers’ taxing power or state-backed revenue models. The company maintains a liquidity portfolio of high-quality securities and uses derivatives mainly for hedging interest rate and currency risks, with matched funding a central element of its risk management. MuniFin is majority owned by the Finnish municipal sector and the public sector pension fund Keva; it operates under a mandate to provide competitive, reliable financing to its defined customer base, rather than universal banking services. The issuer has high-grade long-term ratings from S&P Global Ratings and Moody’s and corresponding top-tier short-term ratings, reflecting the guarantee framework, strong asset quality and conservative risk profile. In recent years, the firm has expanded labelled financing, offering green and social loans aligned with an external framework and reporting on impact indicators, and it has become a regular issuer of green and social bonds to match eligible assets. Key sensitivities include changes in municipal finances, housing policy and guarantee structures, as well as market-wide shifts in interest rates, regulation and investor appetite for public-sector risk.