Kuntarahoitus Oyj - Company Announcement

Health, social services and regional government reform proceeds in Finland - total impact on MuniFin's operations cannot be evaluated yet

Municipality Finance Plc
Stock Exchange Release
29 June 2016 at 17:45 (EET)

Health, social services and regional government reform proceeds in Finland -
total impact on MuniFin's operations cannot be evaluated yet

The Finnish government is planning to implement a substantial reform related to
the Finnish social and healthcare system and regional government. The reform
includes among other things plans to transfer tasks related to social and
healthcare services from municipalities to new autonomous regions.

The Finnish Government has today published preliminary principles and draft
legislation concerning the reform. The materials are available at
http://valtioneuvosto.fi/en/article/-/asset_publisher/10616/hallitus-julkisti-
sote-ja-maakuntauudistuksen-lakiluonnokset.

Some integral components of the reform are still missing and therefore
Municipality Finance Plc ("MuniFin") is not in a position to evaluate the
reform's impact on its operation. Potentially the reform might have an effect on
MuniFin's volumes. MuniFin is actively following the development of the reform.

MUNICIPALITY FINANCE PLC

Esa Kallio, Deputy to the CEO
Tel. +358 50 3377953

Measured by the group's balance sheet, MuniFin (Municipality Finance Plc) is
Finland's third largest credit institution. The company is owned by Finnish
municipalities, the public sector pension fund Keva and the Republic of Finland.
MuniFin is an integral part of the Finnish public economy.

MuniFin's balance sheet totals nearly EUR 34 billion. Funding for the company is
primarily obtained through the international capital markets. MuniFin's funding
is guaranteed by the Municipal Guarantee Board.

MuniFin's mission is to ensure competitive funding for its customers in all
market conditions. The company's customers are Finnish municipalities, municipal
federations, municipally controlled companies and non-profit housing
cor­porations. A significant portion of lending is used for socially responsible
projects such as building hospitals, healthcare centers, schools, day care
centers and homes for the elderly.

The Municipality Finance Group also includes the subsidiary company, Financial
Advisory Services Inspira Ltd.

Read more: www.munifin.fi




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