"Municipal Finance Agency" for German Municipalities about to start

„Nuremberg and Wuerzburg, Municipal Bond 2013/2023“ paves the way for a new class of assets

Straubing, May 14, 2013 – With a landmark transaction the cities of Nuremberg and Wuerzburg will together issue the so called EUR 100 million "Frankenanleihe" (Franconian Bond, ISIN DE000A1TNFP6) on May 16, 2013. The bond is oversubscribed by 4.5 times.

This is the first time that German municipalities issue a bond together. By doing so, Nuremberg and Wuerzburg achieved a higher issuance volume and thus reduced the costs.

However, issuing a bond still consumes a lot of time and costs. For Nuremberg and Wuerzburg the preparation of the "Frankenanleihe" took more than 6 months. Beyond that, institutional investors need a professional bond relations department. Most municipalities can not or do not want to pro-vide such services.

In order to provide small, medium and big municipalities with refinancing on the capital markets, the Kandler Gruppe GmbH (the "Kandler Group") designed the "Municipal Finance Agency" or "MuFin" (Kommunale Finanzagentur, KoFin).
The Kandler Group will organize and manage the complete transaction for the municipalities. This means that the municipalities will not have to take any steps that would not be necessary for taking out a loan. Especially, the municipality will not have to contact the issuing banks, law firms, inves-tors and the stock exchanges.

For this service the municipality will not have to bear any additional costs, especially not for issuing banks, law firms etc., beyond the interest and the repayment of the capital. In addition to this, the standardized MuFin-concept will provide for a significantly shorter period from decision of the mu-nicipality to the issuance of the bond.

As covered by the renowned German business newspaper Handelsblatt and Bloomberg News (September 24, 2012) the first bond issuance of the MuFin is planned for 2013.

Further information on the planned issuances of the MuFin will be given on the re-launched project website http://www.kofin.de during the next weeks.

This text can be found online at http://www.kandler-gruppe.de/presse/

Kandler Group is a young German company, located in a Lower Bavarian city named Straubing, that develops consulting and service solutions for the public sector.
With the “Bürgerkredit 3.0” (“citizens loan 3.0”) the Kandler Group already presented a pathbreaking method for providing direct financing of municipalities by citizens without banks.
Furthermore, Kandler Group presented a corporate or private social responsibility model for a swift reduction of municipal indebtedness.
Under the slogan “Was wir machen, macht sonst niemand” („We do, what no one else does“) Kandler Group provides fundamentally new solutions. Therefore high-potential associates do research for Kandler Group and are highly committed to the innovation and quality of our products. Kandler Group appreciates the open minded and innovative exchange with science and is thus scientifically present by seminars, tutorials and publications.

Kandler Gruppe GmbH
Kreuzbreite 32
D-94315 Straubing
GERMANY

www.kandler-gruppe.de
kontakt@kandler-gruppe.de

This release was published on openPR.