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IIB loan portfolio to exceed EUR 1 bln by end of year

MNB

International Investment Bank (IIB) announced closing a successful half-year after its relocation to Budapest, saying that the end of 2019 the bankʼs loan portfolio will exceed EUR 1 billion.

International Investment Bank held its second meeting with leading Hungarian, CEE and International media since its relocation.

Addressing the audience, the chairperson of IIB management board Nikolay Kosov underlined that since the moment of its relocation the bank has demonstrated accelerated growth dynamics. In just six months, IIB loan and documentary portfolio grew by 11% or EUR 98 million, reaching a value of EUR 990 mln. By the end of the year, the IIB loan book will exceed a record value of EUR 1 bln, he added.

In the reported period, the bank assessed 21 projects in the total volume of almost EUR 500 mln, approving 19 of them, totaling to EUR 373 mln. The projects will be carried out all across the IIB territory and will support sectors such as infrastructure, energy, metallurgy, auto industry, pharmaceuticals, agriculture, food industry, and tourism.

Since its move to Europe, IIB also successfully placed three bond issues – in Hungary, Romania and in the Czech Republic - for more than EUR 275 mln. This is about 30% of the total long-term borrowing received by the Bank since 2014. 

The bank says that its relocation to Europe allowed it to expand its investors’ base. IIB now counts among its investors more than 170 entities and institutions – banks, pension funds, insurance companies - from jurisdictions like Austria, Bulgaria, Croatia, the Czech Republic, Germany, the Netherlands, Hungary, Moldova, Romania, Russia, and the United Kingdom.

The bank said that it observed a sharp decrease in the cost and an increase in the maturity of short-term borrowings. The green bonds share in the IIB treasury portfolio is constantly increasing.

This fall, IIB actively held high-level meetings with leading financial institutions of Hungary, where spheres and instruments of cooperation were discussed.

"These negotiations allow us to state a clearly positive reaction of the Hungarian business community to the bank’s move to Europe, as it is directly interested in the growing importance of Budapest as an international financial center," underlined Kosov. "The activities of IIB, the only international development bank with headquarters in the region of Central and Eastern Europe, contribute to this in every way."

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