Cordia raises HUF 37.6 bln from BGS bond sale
Hungarian property developer Cordia raised HUF 37.6 billion in proceeds from the sale of a corporate bond auctioned on Thursday, state news wire MTI reports, citing a notice posted on the website of the Budapest Stock Exchange.
Cordia offered ten-year bonds with a face value of HUF 36 bln at the auction. Bids came to HUF 49.8 bln.
The bond which carries a 3% annual coupon was sold at an average price of 104.3374%. The average yield was 2.4565%, 110 bp over HUF midswaps.
Cordia intends to use the bond proceeds to finance investments into real estate development and investment projects and developments, acquisitions (lands, portfolios of lands, business shares and immaterial goods etc.), working capital and potentially the refinancing of outstanding loans financing the above purposes (including senior loans, shareholder loans etc.).
Cordia has a ʼBBʼ issuer rating from Scope Ratings.
The bonds were issued in the framework of the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB).
The MNB scheme, with an allocation of HUF 450 bln, aims to beef up Hungaryʼs relatively small corporate bond market.
MNB has bought HUF 18.05 bln Cordia bonds issued through an auction in November 2019.
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