AutoWallis NKP bonds became available for trading on the XBond market of the stock exchange last Friday, after the Budapest Stock Exchange has registered the securities issued by the corporation, according to a press release sent to the Budapest Business Journal.
According to the press release, the issuance of the AutoWallis NKP bonds attracted significant attention and was closed with an oversubscription in April: the institutional investors submitted claims with a total value of HUF 4.15 billion, more than the amount offered. Thus, all of the bonds of a total nominal value of HUF 3 bln offered were subscribed in the transaction, which was prepared and organized by OTP Bank as the investment service provider.
The 60 bonds of HUF 50 million nominal value each, with a fixed interest rate of 3% and with a maturity of 10 years, were purchased for a total of HUF 3.04 bln with an average yield of 2.827%. AutoWallis decided about participating in the favorable financing provided by the Funding for Growth Scheme of the MNB last fall. As a precondition for starting the trading, the corporation acquired the B+ rating of the credit rating agency Scope Ratings last September.
The NKP is integrated in the company’s strategic plans and provides a favorable financing opportunity. The company says that it uses the proceeds to replace parts of the loans of its subsidiaries and its operating lease funds.
The press release argues that with the bond issuance, AutoWallis can partially replace its existing short-term and floating rate financing resources with 10-year fixed or low interests loans.
There are no capital repayment obligations for the bonds for the maturity period.