MFB to raise €1.1 bln abroad

MNB

State-owned Hungarian Development Bank (MFB) plans to raise foreign funding worth €1.1 billion next year, CEOs János Erős and Sándor Czirják announced yesterday. The bulk of the foreign funding would be in medium-term and long-term credit, with 70%-80% raised from international capital markets and 20%-30% from institutional loans. Part of the new liabilities will be used to repay maturing bonds. Czirják said he does not expect spreads to widen more than 5-10bp next year, referring to the possible effect of a recent downgrading of Hungary's sovereign ratings by Fitch.

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