Banks and investors
The State Treasury issues new loans in co-operation with banks. The primary dealer banks chosen by the government are key partners in the government’s long-term borrowing. Investors are mainly large institutional investors.
The State Treasury selects primary dealers to act as the lead banks for arranging syndicated issues. They are also entitled to take part in the auctions organised by the State Treasury.
Primary dealers provide bid and ask prices on the secondary market for government benchmark bonds, which are the most important government bonds.
Co-operation with primary dealers is based on primary dealer agreement: Primary Dealer Agreement 2017 (pdf)
The State Treasury of Finland currently has fourteen primary dealers:
Investors are mainly domestic and foreign institutional investors, typically pensions funds, central banks, asset management companies and banks.
Investors can buy government loans both in the primary and in the secondary market. The State Treasury provides information for investors on government funding and Finnish economy in its annual report, on the web and in investor meetings.