OTP mortgage bonds well oversubscribed
OTP Mortgage Bank conducted an auction of its five-year mortgage bonds on April 3, carrying out the issue of the first tranche in the series via the Budapest Stock Exchange (BÉT). Investors significantly oversubscribed for the offer of bonds of HUF 40 billion face value.
Offers totaling HUF 61.2 bln were received for the mortgage bonds, reported business news portal vg.hu. Responding to the significant investor interest and exploiting a favorable yield climate, the issuer accepted offers of HUF 45 bln. The value date of the issue is April 5.
The report noted that the level of interest was noteworthy given that the average yield of 1.29% still remained significantly below the market yield of government bonds of similar maturity.
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