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Institutional investors subscribe HUF 1.9 bln E-Star bonds

Institutional investors subscribed a combined HUF 1.9 billion bonds offered by Hungarian energy-efficiency company E-Star Alternative in a subscription between Tuesday and Thursday, the company announced on Thursday evening.

The sale will raise the value of bonds the company issued under its HUF 10 billion bond program launched last September to close to HUF 6.9 billion.

Of the three series offered to institutional investors, demand focused on a floating-rate series expiring in 2016 while similar floating series expiring early 2015 was apparently undersubscribed. The five-year fixed-rate series sold well over the minimum, set at HUF 100 million for all three bonds.

Investors subscribed HUF 1.43 billion of the floating-rate EST2016/C bonds which pay interest pegged to the six-month Budapest interbank BUBOR rate and expire on May 30, 2016. The bond pay interest twice a year.

Investors preferred the longer floater, an E-Star spokesman told Econews, when asked of the absence of subscription figures for the other floating-rate E-Star on offer, having similar conditions but expiring on February 12, 2015.

Investors subscribed HUF 464 million of the EST2015/A bonds expiring on February 12, 2015 and carrying a 10.24% coupon paid annually. The maximum yield available on this bond at subscription was 10.2735%, according to standardized Hungarian yield calculations.

Subscriptions of an E-Star retail bond with the same expiration, coupon as the fixed one offered to institutions will continue until June 3.

E-Star, which was known as RFV until early March, is an A-category issuer at the Budapest Stock Exchange.