MVM signs HUF 200 bln credit agreement
The state-owned Hungarian Electricity Works (MVM) has signed a HUF 200 billion revolving credit agreement with a consortium consisting of 12 domestic and foreign financial institutions, state news wire MTI reported on Friday.
MVM CEO János Zsuga said on Friday at the signing of the agreement that the credit line will be used for general corporate financing and for the refinancing of MVM Groupʼs syndicated loan contract. The five-year loan needs to be repaid in a lump sum at the end of maturity, he added.
Deputy CEO András Huszár noted that the loan conditions are very favorable, with an initial credit spread of 40 basis points.
The consortium consists of UniCredit Bank Hungary, the Hungarian unit of BNP Paribas, CIB Bank, the Hungarian unit of Citibank, Commerzbank, Erste Bank Hungary, the Hungarian unit of ING Bank, K&H Bank, TakarékBank, MKB Bank, OTP Bank and Raiffeisen Bank.
MVM Group is the fourth largest company group in Hungary. It recorded more than HUF 1,034 billion consolidated revenues last year, with HUF 110.8 bln EBITDA.
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