IIB raises HUF 24.7 bln in debut HUF bond issue
The Moscow-based International Investment Bank (IIB) said on Monday it has issued a HUF 24.7 billion bond - its debut forint issue - that will be listed on the Budapest Stock Exchange (BÉT), Hungarian news agency MTI reported.
Demand for the bond exceeded HUF 30 bln, well over the initially targeted HUF 15 bln, the IIB said. The bonds were sold at a 77 basis-point spread over the three-year Hungarian government bond, corresponding to a weighted average yield of 1.98%, MTI noted.
The order book for the bond was closed on March 20, after a two-day deal roadshow targeting both offshore and local investors. The lead managers for the issue were OTP Bank and UniCredit Hungary.
The IIB said the bonds were subscribed by "a broad investor base including banks, investment funds and insurance companies." The bonds will float on the BÉT from Tuesday.
The IIB said it will use the proceeds from the sale to finance credit for corporate clients in "European Union member states in general and Hungary in particular."
The IIB will soon relocate its headquarters from Moscow to Budapest, amid controversy in the media with respect to alleged links to the Russian state security apparatus, which the bankʼs management board strongly denied last week.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 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.
