International Investment Bank invested in the debut placement of green bonds arranged by the Hungarian Government Debt Management Agency (ÁKK), according to a press release sent to the Budapest Business Journal.
The issue with a total volume of EUR 1.5 billion was the first green sovereign bond placement in the history of the country.
It faced a strong demand from a wide range of both Hungarian and international investors showing five times oversubscription.
The funds were raised within the “Sovereign Green Bonds Framework of Hungary” and will be directed to finance and refinance environmental projects.
"IIB’s participation in this placement as an investor is logical and natural, as it fully complies with the bank’s mission and ʼThe Policy on Environmental and Social Sustainabilityʼ approved by the Board of Directors in December 2019, which both provide for ESG investments priority," notes Anton Gudkov, head of the ESG investment section of the IIB Treasury.
According to the press release, IIBʼs "green treasury portfolio" accounts for more than50% of the total volume and includes inaugural placements of green bonds of leading government agencies, international financial institutions and corporates.
Imre Laszlóczki, deputy chairperson of IIB representing Hungary in the management board, head of the bankʼs ESG Steering Committee, says "The high demand for the debut issue of green bonds in Hungary - IIB’s shareholder with the second-largest share in the paid-in capital, - is a clear evidence of confidence and support of the international financial community towards the countryʼs effective sustainable development policy. We are pleased to have participated in the successful implementation of this historic bond placement for Hungary, providing aid for a whole specter of priority tasks aimed at restoring the economy after the pandemic."