The transaction, equivalent to approximately HUF 177 billion, was more than 1.5 times oversubscribed, MBH Mortgage Bank said. The successful issuance underlines the mortgage bank’s strategic ambition to establish itself as an active issuer not only in the Hungarian market but also internationally, while demonstrating sustained investor confidence in its covered bonds.

On June 23, 2026, MBH Mortgage Bank completed its first international covered bond issuance of the year, placing EUR 500 mln of covered bonds on the international capital market, a volume considered benchmark size in the sector.

The fixed-rate covered bonds, maturing on June 30, 2032, and carrying a coupon of 3.458%, generated substantial investor interest. A total of 41 institutional investors from 14 countries participated in the transaction, submitting orders worth EUR 856.3 mln.

The bonds were ultimately priced at a spread of 65 basis points over the relevant midswap rate, a level broadly in line with the pricing of Hungarian sovereign euro-denominated bonds.

This transaction marks MBH Mortgage Bank’s second international covered bond issuance. In November 2025, the institution successfully issued EUR 100 mln of covered bonds in the international market.

“Following our inaugural international transaction last year, this issuance represents another important milestone for MBH Mortgage Bank. The EUR 500 million transaction is a significant step forward not only in scale compared with last year’s issuance, but also because reaching benchmark size strengthens our position in the international market, which offers substantially greater liquidity than the domestic market,” said Gyula Nagy, chief executive officer of MBH Mortgage Bank.

He added that both the level of investor demand and the achieved pricing reflect investors’ confidence in MBH Mortgage Bank’s covered bonds, the stable role these securities play in funding operations, and the favourable conditions currently prevailing in international capital markets.

Following this latest successful international issuance, MBH Mortgage Bank intends to further strengthen its presence on international markets and establish itself as a stable participant in the global covered bond market alongside its domestic activities.

“Strengthening our role in international capital markets will further reinforce MBH Mortgage Bank’s position within the Hungarian mortgage banking sector. By broadening our funding opportunities, it will also make a significant contribution to expanding the mortgage lending activities of the MBH Group,” Nagy emphasized.

The funds raised through covered bond issuances are used by MBH Mortgage Bank to provide refinancing loans to its partner banks, thereby supporting their mortgage lending activities, primarily in the retail segment.

Since 2025, MBH Mortgage Bank has operated a new distribution structure for its covered bond issuances, offering securities through three channels: to domestic institutional investors, domestic retail investors and international capital market investors.