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MNBʼs BGS purchases near HUF 138 bln

The National Bank of Hungary (MNB) has so far purchased HUF 137.9 billion of corporate bonds in the framework of its Bond Funding for Growth Scheme (BGS), data updated monthly on the central bankʼs website shows, state news wire MTI reports.

Image: Adriana Iacob/Shutterstock.com

The purchases, made in September-November, include HUF 113.6 bln on the primary market and HUF 24.3 bln on the secondary market.

The primary market data for November show the MNB subscribed HUF 18.1 bln of bonds issued by property developer Cordia, HUF 6 bln of bonds issued by car parts seller Unix Auto, HUF 14.3 bln of bonds issued by poultry processor Baromfi-Coop and HUF 10 bln of bonds issued by listed property holding company Appeninn.

MNB subscribed a further HUF 2.3 bln of Unix Auto bonds, HUF 3.5 bln of Baromfi-Coop bonds and HUF 4 bln of Appeninn bonds on the secondary market.

MNB launched the HUF 300 bln BGS on July 1, 2019 with the aim of beefing up Hungaryʼs relatively small corporate bond market. The program limits the MNBʼs purchases to 70% of a series and caps its exposure to any corporate group at HUF 20 bln.