4iG shareholders okay bond issue; shares included in CECE index

MNB

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Shareholders of listed IT company 4iG mandated the board to issue up to HUF 30 billion of corporate bonds, to be sold in either public or private placements, at an extraordinary general meeting last Thursday, the EGM resolutions show.

A month earlier, 4iG announced its intention to participate in the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB), recalled state news agency MTI.

The MNB launched the BGS on July 1, 2019, with the aim of beefing up Hungaryʼs relatively small corporate bond market. The program limits the central bankʼs purchases to 70% of a series and caps its exposure to any corporate group at HUF 20 bln.

Also in July, 4iG agreed to acquire T-Systems Hungary, a much bigger peer, for an undisclosed price. Chairman-CEO Gellért Jászai said 4iG could finance the acquisition by involving institutional investors and issuing bonds, in addition to taking out credit.

In related news Friday, 4iG said in a statement on the Budapest Stock Exchange (BÉT) that its shares will be included in the CECE Composite Index of the Vienna Stock Exchange (Wiener Börse) from September 23. Following a re-weighting on September 20, 4iG shares will appear in the index with a weight of 0.14%.

The CECE Composite Index is made up of stocks traded on the Budapest, Prague and Warsaw stock exchanges. Other Hungarian companies in the index are holding company Opus, property holding Appeninn, OTP Bank, oil and gas company MOL, drugmaker Gedeon Richter, Magyar Telekom, ANY Security Printing, and insurance company CIG Pannónia.

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