Demand for the bond exceeded HUF 30 bln, well over the initially targeted HUF 15 bln, the IIB said. The bonds were sold at a 77 basis-point spread over the three-year Hungarian government bond, corresponding to a weighted average yield of 1.98%, MTI noted.

The order book for the bond was closed on March 20, after a two-day deal roadshow targeting both offshore and local investors. The lead managers for the issue were OTP Bank and UniCredit Hungary.

The IIB said the bonds were subscribed by “a broad investor base including banks, investment funds and insurance companies.” The bonds will float on the BÉT from Tuesday.

The IIB said it will use the proceeds from the sale to finance credit for corporate clients in “European Union member states in general and Hungary in particular.”

The IIB will soon relocate its headquarters from Moscow to Budapest, amid controversy in the media with respect to alleged links to the Russian state security apparatus, which the bankʼs management board strongly denied last week.