GTC Magyarország raises HUF 19.7 bln with BGS bond issue
Property developer GTC Magyarország raised HUF 19.7 billion in proceeds from a 10-year bond issued in the framework of the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB), auction results posted on the website of the Budapest Stock Exchange show.
GTC Magyarország had offered HUF 18 bln of the bonds. Bids came to HUF 22.5 bln.
The average yield for the bond, which has a 2.60% coupon, was 2.6828%, 18 bp over mid-swaps.
In a separate disclosure, GTC Magyarország said it would use proceeds from the green bonds to finance and refinance acquisition, construction or refurbishment of buildings that meet recognized green building standards.
The bonds are fully guaranteed by GTC SA, it added.
GTC Magyarország raised HUF 39.3 bln in a BGS bond issue in December.
MNB launched the BGS in the summer of 2019 with the aim of beefing up Hungary's relatively small corporate bond market. The program allocation stands at HUF 1.15 trillion.
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