Eximbank conducts most successful bond auction to date

Investor demand for the bond with one-year maturity at 1% nominal interest totaled more than HUF 58 bln, of which bonds worth HUF 32 bln were traded at an average price above nominal value, i.e. at an average yield of 0.94%. There was a demand of more than HUF 45 bln for the bond with five-year maturity (maturing in November 2025) at 1.65% nominal interest rate, of which HUF 20.3 bln was issued at an average yield of 1.68%.

"Eximbank – similarly to commercial banks – in addition to the capital provided by the owner manages resources from money markets in the broader sense," stated Gergely Jákli, CEO, chairman of the board of directors at EXIM Hungary. "Since the bank – due to its specific nature – does not collect customers’ deposits, neither does it hold payment accounts, the resources do not contain account balances or retail deposits. However, there are resources provided by international institutions, such as the European Investment Bank, the European Bank for Reconstruction and Development or the World Bank and resources lent by commercial banks under market conditions and resources derived from bond issuances."

"At the present auction, the demand exceeded HUF 100 billion, which indicates a high degree of depositorsʼ confidence. We constantly monitor the market situation and processes; financing security is a key consideration in our borrowing policy. We take decisions on the currency and maturity of the respective borrowings in full knowledge of market conditions and on the basis of our own judgment of – for example – the asset-liability maturity matching – with the aim to achieve the most favorable total cost," he added.