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Magyar Telekom plans to issue HUF 70 bln bonds through BGS

Magyar Telekom on Wednesday said in a statement that it plans to issue HUF 70 billion of bonds in the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB), state news wire MTI reports.

The fixed-interest bonds are expected to have a tenor of seven years with a 50% amortizing tranche at the end of year six.

The proceeds of the bonds would be used to fund investments into fixed and mobile network roll-out and modernization, including frequencies.

The bonds are expected to be registered to the Xbond platform of the Budapest Stock Exchange within 90 days following the issuance.

Scope Ratings has assigned a "BBB+" investment-grade credit rating to Magyar Telekom with a stable outlook, and also for the bonds planned to be issued.

MTel said the credit rating is supported by its non-cyclical, crisis-proof business profile, a leading position in the mobile and fixed markets in Hungary, a large, diversified customer base as well as an adequate liquidity profile.