On the basis of the bids received, the credit institution finally decided to issue bonds with a total nominal value of EUR 750 million, making it the largest MREL-eligible bond transaction ever undertaken by a Hungarian issuer, the bank tells the Budapest Business Journal.
The new international bond issue of MBH Bank is part of the EUR 1.5 bln bond program launched in 2024.
The bonds, which will have a maturity of five years and will be recallable after four years, will be issued as ordinary unsecured claims with a value date of January 29, 2025. The bonds are used to meet the bank’s MREL requirements, i.e. minimum requirements for own funds and eligible liabilities.
Interest in the issue was extensive, with 130 investors submitting bids and more than 80 percent of the bids received coming from international investors.
“This latest issue is significant not only because now we can meet the highest international requirements while creating stable value for investors, but also because it represents another step in strengthening our presence on the capital markets”, added Péter Krizsanovich, chief strategy and finance officer at MBH Bank.
Producing journalism that is worthy of the name is a costly business. For over 30 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.
