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IIB subscribes EUR 33.8 mln of 1st corp. green bond issued in Hungary

The Budapest-based International Investment Bank (IIB) has subscribed the equivalent of EUR 33.8m of a corporate green bond issued by the Hungarian unit of CPI Property Group of the Czech Republic, state news wire MTI reports, citing a statement by IIB.

CPI Hungary Investment issued the HUF 30 bln green bond - the first corporate green bond issued in Hungary - in the framework of the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB).

"Having acted as the second-largest investor after the [National Bank of Hungary] in a debut corporate placement of green bonds in the country, IIB made another important contribution to the ongoing development of financial markets of its member states, as well as of the entire region of Central and Eastern Europe," said IIB deputy-chairman Jozef Kollár.

CPI Hungary Investment will use the proceeds from the issue to fund general purposes, including capital expenditures, acquisitions, developments, debt repayment, or retention of cash.

CPI Property Groupʼs portfolio in Hungary was valued at EUR 667 mln at the end of 2019.

MNB launched the BGS a little more than a year ago with the aim of beefing up Hungaryʼs relatively small corporate bond market. The program allocation stands at HUF 450 bln.