Nestlé Hungária raises HUF 116.7 bln with BGS bond issue
Production in progress at Nestlé's pet food plant in Bük.
Nestlé Hungária, the local unit of the Swiss food giant, has raised HUF 116.7 billion from the sale of bonds issued in the framework of the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB), state news wire MTI reports, citing auction data published by the Budapest Stock Exchange.
Nestlé Hungária offered HUF 115 bln of seven-year bonds with a 1.75% coupon at the auction on Thursday. Bids reached HUF 196.8 bln.
The average yield was 1.53%, 96 bp under mid-swaps.
The company told MTI it will use the proceeds from the issue to finance its operations in Hungary and to carry out an expansion at its Purina pet food plant in Bük announced in October 2020.
Nestlé Hungária had net revenue of HUF 164.2 bln in 2020. It employs more than 2,400 people at three plants in the country.
MNB launched the BGS in the summer of 2019 with the aim of beefing up Hungary's relatively small corporate bond market. The program allocation stands at HUF 1.15 tln.
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