Municipality Finance PLC
MUNICIPALITY FINANCE PLC – DK0030180831

Municipality Finance PLC 

25.05.2011 12:25

Dissemination of a Adhoc News, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Notice to Holders - 
Reallocation Event

København, 2011-05-25 12:25 CEST (GLOBE NEWSWIRE) -- 

THIS NOTICE CONTAINS IMPORTANT INFORMATION OF INTEREST TO THE BENEFICIAL OWNERS
OF THE NOTES. IF APPLICABLE, ALL DEPOSITARIES, CUSTODIANS AND OTHER
INTERMEDIARIES RECEIVING THIS NOTICE ARE REQUESTED TO PASS THIS NOTICE TO SUCH
BENEFICIAL OWNERS IN A TIMELY MANNER 

If you are in any doubt as to the action you should take, you are recommended
to seek your own financial advice immediately from your stockbroker, bank
manager, solicitor, accountant or other independent financial adviser. If you
have recently sold or otherwise transferred your entire holding(s) of Notes
referred to below, you should immediately forward this document to the
purchaser or transferee or to the stockbroker, bank or other agent through whom
the sale or transfer was effected for transmission to the purchaser or
transferee. 

                            MUNICIPALITY FINANCE PLC
                              (Kuntarahoitus Oyj)

                                 (the 'Issuer')

                    Issue of a Series of DKK 390,000,000.00
            Capital Protected Profit Lock-in Notes due 2014 Linked to
                    EgnsINVEST Aktier, Højt Udbytte, Akk. and
                 EgnsINVEST Obligationer, Pension & Erhverv
                            ISIN Code: DK0030180831
                                  (the 'Notes')

                                  Guaranteed by
                          THE MUNICIPAL GUARANTEE BOARD
                             (Kuntien takauskeskus)

                                Notice to Holders

Any term used herein which is not otherwise defined herein has the meaning
given to such term in the terms and conditions of the Notes, set out in the
Drawdown Prospectus dated 27 August 2009 as supplemented on 2 October 2009
relating to the Notes. 

On May 18 2011, a merger between Investeringsforeningen Sparinvest (the
surviving entity) och the one hand and Investeringsforeningen EgnsInvest and
Placeringsforeningen Egnsinvest (the ceasing entities) on the other hand, was
approved by Finanstilsynet (the Danish FSA). As a consequence of such mergers,
several of  the subfunds of those entities will merge, all in accordance with
the mergerplan published on NASDAQ OMX Copenhagen A/S and the web pages of the
merging entities. 

Due to the above mentioned mergers, a Reallocation Event has occurred, pursuant
to paragraph (ix) of the definition of 'Reallocation Event'. The Non Risky Fund
is scheduled to merge with Sparinvest Mellemlange Obligationer, which will be
the surviving entity, the result of which is that the determination of the
Index Value becomes, and is likely to remain for the foreseeable future,
impossible or impracticable. 

Pursuant to paragraph (ii) of Condition 3 (Reallocation) of the Additional
Terms and Conditions of the Notes, the Calculation Agent has decided, with the
consent of the Issuer, to substitute EgnsINVEST Obligationer, Pension &
Erhverv, ISIN DK0010282276 with Sparinvest Mellemlange Obligationer, ISIN
DK0060105476 as the Non Risky Fund which is expected to be effective on May 25
2011. 

For the information of Holders, the Risky Reference Fund has changed its name
from EgnsINVEST Aktier, Højt Udbytte, Akk. ISIN DK0060012896 to Sparinvest
Momentum Aktier, akk. ISIN DK00600112896 and changes are expected to be
finalised as of May 25 2011. 

Should you have any queries concerning the information contained in this
notice, you may contact the Calculation Agent, being Nordea Bank Danmark A/S,
Christiansbro, Strandgade 3 DK-1401 Copenhagen K, Denmark, Peter Jensen, Head
of Funds Trading, +45 3333 4119, peterj@nordea.com. 

MUNICIPALITY FINANCE PLC

May 19, 2011
News Source: NASDAQ OMX



25.05.2011 DGAP's Distribution Services include Regulatory Announcements, 
Financial/Corporate News and Press Releases.
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Language:     English
Company:      Municipality Finance PLC
              
               
              Denmark
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         DK0030031406
WKN:          
 
End of Announcement                             DGAP News-Service
 
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