Kuntarahoitus Oyj - Company Announcement

The ECB granted Municipality Finance permission to classify its shares as CET1 instruments

Municipality Finance Plc
Stock exchange release
4 May 2016 at 11.30 a.m. (EET)

The ECB granted Municipality Finance permission to classify its shares as CET1
instruments


The Annual General Meeting of Municipality Finance Plc ("MuniFin"), held on 22
March 2016, decided to amend the company's Articles of Association by removing
the company's right to redeem its own shares in order to meet the requirements
of Regulation (EU) No 575/2013 (Capital Requirements Regulation) for Common
Equity Tier 1 instruments. After the decision of the AGM, MuniFin applied for an
approval from the European Central Bank ("ECB") for inclusion of the shares into
the company's CET1 capital. On 3 May 2016, the ECB granted MuniFin permission to
classify all of its existing share capital instruments as Common Equity Tier 1
instruments.


MUNICIPALITY FINANCE PLC

Mari Tyster
Executive Vice President, Administration and Legal Affairs
tel. +358 50 3686 860

MuniFin's (Municipality Finance Plc) mission is to ensure competitive financial
services for its customers in all market conditions. MuniFin's balance sheet
totals nearly EUR 34 billion, making it the third largest credit institution in
Finland and an integral part of the Finnish public economy.

The company is owned by Finnish municipalities, the public sector pension fund
Keva and the Republic of Finland. Its customers are Finnish municipalities,
municipal federations, municipally controlled companies and non-profit housing
cor­porations. Importantly, 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.

MuniFin's funding is primarily obtained through the international capital
markets. The funding is guaranteed by the Municipal Guarantee Board.

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

Read more: www.munifin.fi


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