Magyar Eximbank sells EUR 75 mln eurobonds at negative yield

Debt

Magyar Eximbank sold EUR 75 million of one-year eurobonds at an auction on Monday, a disclosure posted on the website of the Budapest Stock Exchange shows, according to Hungarian news agency MTI.

Magyar Eximbank noted in a press release that the bond was the first in the history of Hungarian capital markets to be sold with a negative yield. 

Magyar Eximbank originally planned to sell EUR 50 mln of the EXIM 2017/1 eurobonds in their first issue, but raised its offer after bids came to EUR 335.3 mln.

The bonds pay a fixed annual 0.01%. They were sold at an average price of 100.0920%, which translates as a negative yield.

The bonds were sold exclusively in Hungary, according to the issue prospectus. They will be listed on the Budapest Stock Exchange.

Magyar Eximbank will use the proceeds from the issue to "meet general financing requirements, diversify financing structure and optimize the assets-liabilities maturity match," according to the prospectus.

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