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Alteo plans to refinance expiring bonds

Listed alternative energy company Alteo plans to place privately at most HUF 1.5 billion in bonds to refinance its 2019/I bonds expiring in July, the company said late on Friday, as reported by state news agency MTI.

There is HUF 925 million outstanding of the 2019/I bonds. After the private placement, Alteo plans to introduce the bonds onto the Budapest Stock Exchange. The likely term is between three and five years, and Alteo could accept the old bonds as payment.

Citing its stronger balance sheet resulting from a recent capital raise, Alteo said it aims at reaching a lower spread over government bonds on the new bonds than the spread on its existing bonds.

Alteo raised HUF 2 bln in a private placement of new shares at HUF 670 per share in March. It cited attractive domestic renewable energy projects with total investment needs of between HUF 7 bln and HUF 10 bln.

The company posted a HUF 24 mln net loss on sales revenue of HUF 6.49 bln in Q1 2019, non-audited IFRS consolidated figures show.

Alteo shares closed at HUF 776 on Friday. The company is 65.95% owned by Wallis Asset Management.