Hungarian energy-efficiency company RFV will publicly issue HUF 1.5 billion-HUF 2 billion in fixed-rate corporate bonds during the last week of September, the company announced on Monday evening.
The issue will be the first one under RFV's recently approved bond program worth HUF 10 billion.
RFV said that the bond's maturity will be identical to that of the 2014/C government bond, it will be redeemed on maturity in a lump sum, and it is expected to be priced to yield 370 basis points over that of the 2014/C. The bonds are planned to have a nominal value of HUF 100,000 each.
The company will conduct the bond issue through investment company Equilor.
RFV will announce final conditions on September 25
The 2014/C is the current three-year benchmark bond. The 2014/C bonds expire on February 12, 2014, have a 5.5% annual coupon. Calculating with Monday's three-year secondary market benchmark of 6.83%, the RFV bonds would yield 10.53% at present.
RFV shareholders mandated the issue of HUF 10 billion in corporate bonds over a period of 12 months at a September 17 EGM in order to finance new projects.
The company announced in September that it won two big contracts to renovate and operate the district-heating systems in the cities of Zalau and Targu Mures, Romania requiring a combined investment of HUF 15.5 billion in the next four to five years. (MTI-Econews)