Cordia raises HUF 4 bln from BGS bond sale

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Hungarian property developer Cordia raised HUF 4 billion in proceeds from the sale of a bond issued in the framework of the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB) yesterday, according to auction results posted on the website of the Budapest Stock Exchange.

Cordia had offered HUF 4 bln of the 10-year bond and bids matched that. The bond, which carries a 3% annual coupon, was sold at an average price of 100.3083%.

The average yield was 2.9587%, 131 base points over midswaps. Cordia sold HUF 37.6 bln of the same bond, maturing on July 27, 2030, at an auction in July. Cordia sold HUF 44.4 bln of another, seven-year BGS bond in November 2019.

MNB launched the BGS in the summer of 2019 to beef up Hungaryʼs relatively small corporate bond market. The program allocation now stands at HUF 750 bln.

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