Kuntarahoitus Oyj - Other information disclosed according to the rules of the Exchange

O-SII buffer requirement of MuniFin is subject to change

Municipality Finance Plc
Stock Exchange Release
December 28, 2017 at 4.30 pm (EET)

O-SII buffer requirement of MuniFin is subject to change

Finnish Financial Supervisory Authority (FIN-FSA) has set an addition capital
requirement of 1.0% for Municipality Finance Plc as a credit institution
significant for the Finnish financial system (O-SII) at its meeting of 21
December 2017.

MuniFin is able to meet clearly all capital requirements set to it, including
this O-SII buffer requirement. The O-SII buffer requirement will take effect on
1 July 2018. The current O-SII buffer requirement for MuniFin is 0.5%.

The change is based  is based on the scoring specified in the current guideline
of the European Banking Authority (EBA) and supervisory information for the
periods following Nordea's restructuring in January 2017, reported to the FIN-
FSA on 30 June 2017.

MUNICIPALITY FINANCE PLC

Esa Kallio
Interim CEO
Tel. +358 50 3377 953

Measured by the group's balance sheet, MuniFin (Municipality Finance Plc) is
Finland's second largest credit institution: the company's balance sheet totals
nearly EUR 34 billion. 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 mission is to help its customers thrive in changing circumstances. The
company ensures competitive funding for its customers in all market conditions.
Its customers are Finnish municipalities, municipal federations, municipally
controlled companies and non-profit housing cor­porations. Lending is used for
environmentally and socially responsible investment targets such as public
transportation, sustainable buildings, hospitals and healthcare centers, schools
and day care centers, and homes for the elderly.

MuniFin's customers are domestic but the company operates in a completely global
business environment. It is the most active Finnish bond issuer in international
capital markets. The funding is exclusively 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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