Shareholders of the Budapest Stock Exchange (BÉT) decided to establish a securitization consulting firm at an extraordinary general meeting on Wednesday, the bourse told state news agency MTI.
"Bundling" corporate debt owed to banks and then selling it to institutional investors in the form of bonds will allow domestic companies to indirectly appear on the capital market, thereby expanding their forms of financing, explained the BÉT, noting that the subsidiary it intends to establish is aimed at supporting and promoting this process.
Under the proposal submitted to shareholders at the EGM, Első Értékpapírosítási Tanácsadó will be set up with total initial capital of HUF 800 million, including registered capital of HUF 50 mln and capital reserves of HUF 750 mln.
A recent amendment to the capital markets act has allowed the BÉT to perform organizing and consulting activities promoting securitization, with permission from the National Bank of Hungary (MNB), while also taking into account the protection of investorsʼ interests. The service portfolio of the new subsidiary is expected to be developed in the 12 months following its establishment, the bourse said in the statement.
A well-functioning securitization market is an important component of the development of an efficient capital market, the BÉT added in the statement.