Duna House had offered HUF 6 bln of the 10-year bonds with a 4.5% coupon. Bids reached HUF 7.75 bln.
The average yield was 4.71%, 5 bp under mid-swaps.
The bond is rated BB- by Scope Ratings, one notch over the BGS participation threshold.
Duna House said in mid-December, after it announced a deal to acquire 70% of of HGroup, Italy's second-biggest loan broker, that it would weigh the issue of an additional HUF 6 bln BGS bond. Proceeds from the issue would be used to strengthen its current financial position in light of future earn-out payments, refinance the existing debt of HGroup, make other possible acquisitions and maintain the dividend policy of the group, Duna House said at the time.
NBH policy makers announced in December, amid a tightening cycle, that the BGS would end when its HUF 1,550bn allocation runs out. The central bank had subscribed HUF 1,311bn in BGS bonds by the end of December.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
