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Daimler Hungary unit raises over HUF 40 bln from BGS bond sale

Mercedes-Benz Manufacturing, the Hungarian unit of German automotive industry giant Daimler, raised HUF 40.3 billion in proceeds from the sale of a corporate bond on Wednesday, Hungarian news agency MTI reports, citing a notice posted on the website of the Budapest Stock Exchange.

The bonds which carry a 1.5% annual coupon, were sold at an average price of 100.7702%. The average yield of the bonds was 1.3838%, 36 bp over swaps.

The bonds were issued in the framework of the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB).

MNB launched the 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. The allocation for the scheme was recently raised from HUF 300 bln to HUF 450 bln.