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CPI Property Group green bond offering successful

CPI Property Group (CPIPG) successfully issued Hungaryʼs first corporate green bond last week, according to a press release sent to Budapest Business Journal.

Image by Pavel Kapysh/Shutterstock.com

On August 5, the group auctioned HUF 30 billion of senior unsecured green bonds with a 10-year bullet maturity.

The bonds carry a coupon in Forint of 2.25% and were sold at a yield of about 2.02% following a robust investor response with bids of more than HUF 45 bln received at auction. The issuer was the groupʼs subsidiary CPI Hungary Investments Kft., with an unconditional guarantee from CPIPG. Raiffeisen Bank Zrt. acted as sole mandated lead arranger on the offering.

The Bonds were issued under the Bond Funding for Growth Scheme (BGS), which was implemented by the National Bank of Hungary (MNB) to increase the liquidity of the local bond market. CPIPG is the second company headquartered outside of Hungary to issue under the BGS, following a successful transaction by a subsidiary of Daimler AG in March 2020.

"CPIPG is delighted with the success of this transaction and appreciates the strong support of the MNB," said David Greenbaum, CFO of CPIPG. "The group has now completed four green bond transactions in three currencies, an achievement matched by less than ten other corporate issuers around the world."

The bonds (ISIN code: HU0000359898) will be admitted for trading on the xBond market operated by the Budapest Stock Exchange.

According to the press release, proceeds from the bonds will be used for general corporate purposes which may include capital expenditures, acquisitions, developments, debt repayment or retention of cash.

Proceeds will be allocated in line with the guarantorʼs Green Bond Framework, CPIPG says.