AutoWallis completes successful bond auction
AutoWallis has closed a successful private placement bond auction , with institutional investors purchasing the 10-year bond with HUF 3 billion nominal value and 2.827 average yield, according to a press release sent to the Budapest Business Journal.
AutoWallis CEO Gábor Ormosy (center) says that the appetite experienced during the bond issuance process could demonstrate that investors have a positive view on the company’s strategy.
Institutional investors have over-subscribed the issuance and offered requests for a total HUF 4.15 bln.
All the bonds offered with nominal value of HUF 3 bln have been subscribed in the transaction, which was prepared and organized by OTP Bank as investment service provider.
Some 60 bonds were purchased each with HUF 50 mln nominal value, fix 3 % coupon, 10-year maturity and 2.827 average yield for a total amount of HUF 3.04 billion.
The company hosted the bond auction through the Growth Credit Program of the Hungarian National Bank after the company could successfully acquire the credit rating prescribed for the auction.
Gábor Ormosy, CEO of AutoWallis highlighted that the program can fit well to the company’s strategic plans, and offer a favorable financing tool.
The company will use the received income to re-finance its subsidiaries’ existing loans and part of the operative leasing.
As a result of the bond issuance, AutoWallis can also replace some of its existing financing sources, with short term maturity and floating interest rate, with 10-year maturity with fix interest rate, according to the press release.
The company will not have to reimburse the equity portion of the bond during the tenure.
The CEO argued that the appetite experienced during the bond issuance process could demonstrate that investors have a positive view on the company’s strategy and the performance it so far delivered.
Hungary Gasoline Prices 3% Over Regional Avg
Gov't Wants Sustainable Business Model for Magyar Posta
120,000 Guest Workers Employed in Hungary
Budapest Airport Wins 'Best Airport in Eastern Europe' for 1...
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
