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MOL to auction HUF 10 bln three-year bonds on Monday

Hungarian oil and gas company MOL will publicly offer HUF 10 billion three-year fixed-rate bonds at an auction on April 18, the company announced.

The bonds will carry a fixed 7% annual coupon, will be issued on April 18 and will expire on April 18, 2014.

MOL did not set any price limit on bids.

The auction will be unsuccessful if bids do not reach the announced HUF 10 billion, while. MOL reserves the right to accept oversubscription.

The issue will be organized by Hungary's Raiffeisen bank which will also underwrite the issue.

MOL will initiate to list the bond on the Budapest Stock Exchange.

The sale will be the second issue under MOL's 2010-2011 bond program which is capped at HUF 100 billion and was launched in the summer of 2010.

MOL sold HUF 5.05 billion of bonds in the first offering under the bond program, which was also MOL's first retail forint bond offering, in October 2010. The 18-month bonds, carrying an annual 6% coupon, were last traded at 96% of nominal value on the Budapest Stock Exchange on April 12.