Richter takes ‘initial steps’ to BGS bond issue

Image by gedeonrichter.com

Pharmaceutical company Gedeon Richter last week said its management had taken "initial steps" to participate in the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB), according to an announcement on the website of the Budapest Stock Exchange.

A decision on participation in the scheme, with the issue of a 10-year bond, will be taken by Richter's board. The company's decision related to the potential scale, coupon and timing of such an issue will be taken at a later date, Richter said.

The blue-chip pharma firm added that it had initiated a review of its external funding framework "in order to improve [its] acquisition capabilities."

The MNB launched the BGS in the summer of 2019 with the aim of beefing up Hungary's relatively small corporate bond market. The program allocation stands at HUF 1.15 trillion.

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