MNB books over HUF 300 bln of BGS purchases in Dec

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The National Bank of Hungary (MNB) booked the purchase of HUF 322.2 billion of corporate securities issued in the framework of its Bond Funding for Growth Scheme (BGS) in December, state news wire MTI reports, citing data released by the central bank.

MNB bought HUF 268.5 bln of the bonds on the primary market and HUF 53.7 bln on the secondary market during the month.

MNB launched the BGS before the crisis to give impetus to the local corporate bond market. Central bank policymakers announced in December, amid a tightening cycle, that the scheme would end when its HUF 1.55 trillion allocation is reached.

The central bank had subscribed HUF 1.311 tln BGS securities by the end of December.

Among the bonds MNB purchased in December were a combined HUF 139.7b nl of two bonds issued by special ESOPs of OTP Bank. The proceeds from the ESOPs' issues were used to buy close to HUF 200 bln of OTP treasury shares.

Other big BGS bonds subscribed by the central bank were HUF 50 bln of a security issued by contract electronics maker Flextronics and close to HUF 73.8 bln of tap issuance of listed IT company 4iG.

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