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Alteo to issue HUF 9.3 bln bond in BGS framework

Listed alternative energy company Alteo on Thursday announced it will issue HUF 9.3 billion of corporate bonds in a private placement on October 24, state news wire MTI reports.

Alteo is issuing the bonds in the framework of the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB).

he bonds carry a fixed annual coupon of 3.15% and are priced at a minimum 87.855% of face value.

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

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