MNI INTERVIEW: Finnish Dollar Bond Sales Not Attractive Now

Market pricing means Finland is currently unlikely to issue dollar-denominated debt, a senior Treasury official told MNI, adding that there we no changes to existing funding plans.

"Any dollar bond issuance would be subject to market conditions, i.e. matching the cost of equivalent euro issuance. Given current market pricing, it does not seem very likely in the short term,” Anu Sammallahti, Deputy Director; Funding, Liquidity and Investor Relations at the Finnish State Treasury Finance Division, said in an answer to emailed questions.

Sammallahti indicated there are presently no plans to adjust the Treasury’s funding requirements for the year. A new five-year sovereign bond was issued in August, shortly before the government in Helsinki submitted a precautionary EUR10 billion loan and guarantee proposal to parliament as part of its third supplementary budget.

The measure, which is intended for use by the energy sector but comes with harsh terms that it is believed will limit drawdowns, means net borrowing in 2022 could be as high as EUR18.9 billion.

Finland auctioned EUR 1.5bn in September 2032 RFBB bonds with a 1.5% coupon on Sept 20.