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Wingholding raises HUF 8.7 bln with BGS bond issue

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Hungarian property developer Wingholding raised HUF 8.73 billion from the sale of a 10-year bond in the framework of the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB) on Tuesday, state news wire MTI reports, citing auction data posted on the bourse's website.

Wingholding had offered HUF 9 bln of the 10-year bonds with a 5% coupon. Bids reached HUF 9 bln. The average price was 97.06%.

The average yield was 5.44%, 56 bp over mid-swaps. 

Ratings agency Scope Ratings at the end of January affirmed the B+ rating on Wingholding and revised the outlook to stable from positive. The senior unsecured debt rating has been lowered to B+ from BB-. Scope said the proceeds from the bond are earmarked for investments in real estate assets and refinancing.

Wingholding raised HUF 24.5 bln with a BGS bond issue in September 2021 and before that it raised HUF 54.4 bln with a BGS bond issue in the spring of 2020.

MNB has said it will wind up the BGS after its HUF 1.55 trillion allocation runs out. The central bank had subscribed HUF 1.465 tln of BGS bonds by the end of January.

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