IIB achieves new lowest euro after-swap price
Image by iib.int
Following the update of its MTN Program registered on February 26, International Investment Bank (IIB) executed its third private placement this year, denominated in the Hungarian forint, in the volume of HUF 8.5 billion (EUR 23.3 million) with the coupon amounting to 1.90% p.a. reaching a record low euro after-swap price of 0.065% p.a., according to a press release sent to the Budapest Business Journal.
It is the fourth issue denominated in HUF for IIB over the last two years making the total amount outstanding HUF 70.7 bln (approx. EUR 192 mln).
The deal was organized by UniCredit AG, and placed with five Hungarian investors and three offshore investors from Germany, France, and the Czech Republic participating in the transaction.
The coupon of 1.90% represents a spread of around 60 bp over the Hungarian government bonds curve, a tightening of 40 bp compared to the HUF deal executed last September.
“I think it is no coincidence that our new lowest cost of funds comes via the issuance of bonds denominated in HUF, the currency of our host country, immediately after the inauguration of our new location in Budapest, in a beautiful historical building," concluded Nikolay Kosov, chairperson of the IIB management board.
“Just a week ago on February 26 we registered our updated MTN Program and on March 2 we organized our second Global Investor Call with a participation of more than 50 investors. Taking advantage of these positive events we were able to use the momentum and execute our third private placement this year, further decreasing overall funding costs," noted Jozef Kollar, first deputy chairperson of the IIB management board, in charge of treasury and debt capital markets.
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.