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4iG to join MNB Bond Funding for Growth Scheme

Listed IT company 4iG on Thursday said it intends to participate in the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB), under a decision taken by its board of directors, state news agency MTI reported.

"Preparations for joining BGS are still in progress, after which detailed information will be duly provided," 4iG said.

The MNB launched the BGS on July 1, 2019, with the aim of beefing up Hungaryʼs relatively small corporate bond market. The program limits the central bankʼs purchases to 70% of a series and caps its exposure to any corporate group at HUF 20 billion.

4iG has called a shareholdersʼ meeting for September 5, 2019, to authorize the board to issue corporate bonds up to HUF 30 bln.

In July, 4iG agreed to acquire T-Systems Hungary, a much bigger peer. The purchase price was not disclosed. Chairman-CEO Gellért Jászai said earlier that 4iG could finance the acquisition by involving institutional investors and issuing corporate bonds, in addition to taking out credit.