Daimler Hungary unit raises over HUF 40 bln from BGS bond sale

Debt

Mercedes-Benz Manufacturing, the Hungarian unit of German automotive industry giant Daimler, raised HUF 40.3 billion in proceeds from the sale of a corporate bond on Wednesday, Hungarian news agency MTI reports, citing a notice posted on the website of the Budapest Stock Exchange.

The bonds which carry a 1.5% annual coupon, were sold at an average price of 100.7702%. The average yield of the bonds was 1.3838%, 36 bp over swaps.

The bonds were issued in the framework of the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB).

MNB launched the BGS on July 1, 2019 with the aim of beefing up Hungaryʼs relatively small corporate bond market. The program limits the MNBʼs purchases to 70% of a series and caps its exposure to any corporate group at HUF 20 bln. The allocation for the scheme was recently raised from HUF 300 bln to HUF 450 bln.

ADVERTISEMENT

Gen Gov't Deficit to Reach 6.1% of GDP in 2022 - Varga Analysis

Gen Gov't Deficit to Reach 6.1% of GDP in 2022 - Varga

Horthy Statue to be Unveiled in Parliament Parliament

Horthy Statue to be Unveiled in Parliament

UPS Appoints Regional Director Appointments

UPS Appoints Regional Director

Completion of Metro Line M3 Renovation Delayed City

Completion of Metro Line M3 Renovation Delayed

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.