Richter plans BGS bond issue up to HUF 70 bln
Image by gedeonrichter.com
Hungarian pharmaceutical company Gedeon Richter announced plans to issue up to HUF 70 billion of bonds in the framework of the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB), according to a report by state news wire MTI.
Richter said late in March that its management had taken "initial steps" to participate in the BGS with the issue of a 10-year bond.
On Thursday, Richter said the issue had been assigned a BBB+ rating by Scope Ratings.
In its rating rationale, Scope Ratings said Richter planned to issue a ten-year BGS fixed-coupon bond with amortization of 10% in years 7-9 and 70% in year ten. Richter will use proceeds from the sale for "general corporate financing", it added.
Scope Ratings noted that Richter "intends to increase its dividend pay-out in the next years to avoid excess cash accumulation".
Hungary Gasoline Prices 3% Over Regional Avg
Hungary to Address Future of Cohesion Policy During EU Presi...
Cordia’s Marina City Project Begins
Budapest Airport Wins 'Best Airport in Eastern Europe' for 1...
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.
