Transcript: Interview with Finland State Treasury’s Anu Sammallahti on 24 November 2025
27 November 2025
By Marta Vilar – MADRID (Econostream) – Following is the full transcript of the interview conducted by Econostream on 24 November with Anu Sammallahti, Director of Finance and Acting Head of Division at Finland’s State Treasury:
Q: A few weeks ago, Finland returned to the USD market with a $1.5 billion bond. How did that transaction perform?
A: The issue was certainly a success, as we priced in line with—or even tighter than—some of our peers earlier, and we were able to generate savings versus our euro benchmark curve. At the same time, the transaction attracted a broad spectrum of global investors, which is one of the main reasons we issue in USD.
Q: You issued one USD-denominated bond in 2024 and another one in 2025. Should the market expect you to return to the USD market again in 2026?
A: In 2024 we issued a 10-year USD-denominated bond, and this year we issued a 5-year USD bond. As for USD-denominated bills, we issue those on a regular basis. We currently have USD bills outstanding for 26 January and 26 March, and their maturities are typically around six months at issuance. For bonds, our usual maturities range from three to ten years, so that is what you can generally expect from us. And yes, we would indeed like to issue another benchmark-sized USD bond next year, though this will of course depend on market conditions.
Q: Could you give any indication about the timing of such issuance?
A: The timing of the USD-denominated benchmark bond will depend largely on market conditions and on opportunities to issue cost-effectively. As for the bills, their issuance is more regular, although even there the number of suitable windows will be limited.
Q: Would you consider tapping other foreign currency markets in the future?
A: Yes, provided it is cost-effective. In addition to USD, we have previously issued bonds in GBP as well as in SEK and NOK, all under our EMTN program. For any of these other currencies, there would need to be clear cost savings, specifically relative to our euro benchmark curve, before we consider issuing.
Q: So, if you were to tap foreign currency markets again, would GBP, SEK and NOK be the most probable choices outside of USD?
A: Yes, those three would probably be the most likely.
Q: Beyond foreign currency issuance, what should investors expect from your broader funding strategy for 2026?
A: We expect next year’s issuance to closely follow this year’s pattern, with the overall size of the funding program remaining broadly unchanged. At present, it is estimated at around €42 billion, of which more than half would be long-term funding. This would include three euro benchmark syndications and auctions of the existing euro benchmark bonds, as well as a USD benchmark transaction, provided market conditions allow. On the short-term side, the program would consist of T-bills issued in both euros and US dollars.
Q: Which maturities are you currently considering for those euro benchmark bonds?
A: We issue a new 10-year bond every year. Then, we would most likely consider a longer maturity as well, possibly in the 15- to 20-year segment for one of the syndications. For the remaining syndication, we would look at mid-maturities, typically in the five- to seven-year range.
Q: What timing are you looking at for these syndications?
A: The timing would follow our usual pattern. We aim to carry out one euro syndicated transaction per quarter: one in Q1, one in Q2 and one in Q3.
Q: In January this year you issued a new 20-year bond via syndication. Should we expect one of your 2026 syndicated deals also to take place that early in the year?
A: Potentially yes, if market conditions allow, but certainly in the Q1.
Q: In 2025 you issued across maturities from 7 to 20 years and reopened several benchmarks. How do you decide which tenors to prioritize?
A: We aim to maintain predictability in our choice of tenors. As noted, we always issue a new 10-year benchmark, one longer-dated benchmark and one in the mid-maturity range for the euro syndications. For reopenings, expected demand is naturally a key factor, and curve maintenance also plays a role in determining which bonds are auctioned. As for the precise sequencing, even within the syndications, market conditions remain crucial. And for reopenings via auctions, we also take into account the views of our primary dealer banks.
Q: Which segment of the curve is currently seeing the strongest investor demand?
A: It appears that the mid-maturity segment, namely five to seven years, continues to enjoy solid support. More fundamentally, when we look at market turnover and overall flow, the 10-year tenor tends to be particularly popular.
Q: What about the long end of the curve? Some other issuers say investor interest in the long end has risen recently. Your curve extends to 30 years, and your last 30-year issue was in 2024. You said one of your syndications could be in the 15- to 20-year range. Is a 30-year bond issuance off the table?
A: Not completely, but to maintain predictability in the sequencing of our long-term maturities, you can generally expect us to introduce a new 30-year line roughly every three years, as this also supports curve maintenance.
Q: So, it is more likely that you will go for that in 2027, right?
A: Of course, everything is always subject to market conditions, but that would be the typical pattern.
Q: Are you now seeing more interest from investors in the longer end of the curve?
A: I would say that we see a fair amount of interest across the curve, no particular segment stands out.
Q: In our interview last year, you mentioned that there were no imminent plans to issue green bonds. Is that still the case or do you see any chances of that changing soon?
A: That remains the case, and we do not foresee any change in this stance. We, of course, continue to highlight the Finnish government’s climate targets and the fact that they are enshrined in law. There is solid evidence of commitment at the government level, and given that Finland tops the UN Sustainable Development Goals ranking and has made strong progress on emission-reduction targets, we do not currently see a need for signaling with green bond issuance.
Q: Some euro area sovereigns have recently announced plans for defense bonds. Given Finland's increased defense spending, could this be something that you might consider as well?
A: Never say never. We have not considered that, but will certainly be interested to follow market developments on this topic. Defense spending is, of course, a part of the regular budget in Finland. Secondary market liquidity and adequately supporting it for our regular nominal bonds remain key. When talking about labelled products, I think it's always important to understand what purpose that label would serve and what benefit it would bring. For green bonds, it is obvious that there are some investors who have specific funds with green targets and demand for labelling. But thus far I am not aware of any defense bond funds being set up.
Q: What is your view on the Finnish yield spread to Germany?
A: If we look at the 10-year point, Finland’s spread to Germany has actually tightened this year. It's currently not at the tightest level of the year, but it's approximately 10bp tighter than it was at the start of the year and in the summer. The low point during the year for the 10-year point was in March. This tightening versus Germany is something we have certainly witnessed for many other European government bonds as well, particularly the ones from further south in Europe, but others too. So, it might be more down to Germany moving versus the others then.
Q: Finland's rating was downgraded by Fitch this year. Do you anticipate any shift in foreign investor appetite or participation because of that?
A: Thus far we have not seen any signs of such a shift. The downgrade took place a few months ago already. So, the ratings were at their current levels in our recent USD issue. That would be the latest evidence on the topic.