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Alteo raises HUF 8.8 bln from BGS bond sale

Listed alternative energy company Alteo said Thursday it has raised a little more than HUF 8.8 billion in proceeds from the sale of corporate bonds issued within the framework of the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB), state news wire MTI reported.

Alteo offered HUF 9.3 bln of the bonds. Bids came to HUF 15.75 bln, with Alteo accepting bids for HUF 8.6 bln of the bonds, at face value.

The yield of the bond was 2.8546%, 155 basis points over mid-swaps.

Alteo said earlier it could refinance up to 45% of its liabilities from the proceeds of the bond sale.

The MNB launched the HUF 300 bln BGS on July 1, 2019, with the aim of beefing up Hungaryʼs relatively small corporate bond market, recalled MTI. The program limits the MNBʼs purchases to 70% of a series and caps its exposure to any corporate group at HUF 20 bln.