Acquisition of funds
Finnvera obtains long-term financing primarily by issuing notes under the Euro Medium Term Note (EMTN) programme guaranteed by the State of Finland. In October, the credit rating agency Standard & Poor’s reduced the rating of Finnish government’s long-term credits from AAA to AA+. In consequence, Standard & Poor’s rating for the loan programme is AA+ while Moody’s rating is Aaa. According to the current estimate, the lower credit rating will have little impact on the price and availability of funds.
The loan programme enables a rapid response to Finnvera’s funding needs and to changes on the market. Moreover, as the loan programme conforms to international capital market practices, it strengthens Finnvera’s position among investors. The aim is to diversify the acquisition of funds among various repayment periods and investor sources.
During the period under review, Finnvera successfully issued three fixed-rate debt securities. The largest of these was a note of EUR 750 million issued in November.
Finnvera uses the funds acquired both for SME financing and for financing export credits. By means of currency and interest rate swaps, Finnvera converts the funds acquired into euros or US dollars, depending on the final use of the funds.