ADVERTISEMENT

Cordia raises HUF 37.6 bln from BGS bond sale

Deals

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.

ADVERTISEMENT

Fiscal, monetary policy partnership needed to rein in CPI - ... Analysis

Fiscal, monetary policy partnership needed to rein in CPI - ...

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

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.