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Alteo sells HUF 571m in three-year bonds in public offering

Hungarian energy supplier and trader Alteo has sold a total of HUF 571.04m in three-year bonds in a public offering that ended on Monday, accepting all subscriptions, the company said late on Monday.

Alteo offered at least HUF 150m of its 2014/D three-year bonds in the offering. The issue is the first one under Alteo’s HUF 2bn note programme announced in June.

Retail investors subscribed HUF 260.04m in bonds, well over the respective HUF 50m minimum offer in the offering held between November 15 and November 21. Institutional investors subscribed HUF 311m, also more than their minimum offer of HUF 100m, in the offering which took place between November 15 and 17.

The bonds on offer carry a fixed yield of 12.37%, and have a run between November 23, 2011 and August 22, 2014.

The best yield available at subscription was 12.37% according to standardised yield calculations (EHM), well over the three-year secondary market government securities benchmark which varied between 7.89% and 7.96% during the subscription period.

Alteo had said the bonds were designed to finance company initiatives. CEO Attila Chikan Jr. recently said the company is interested in acquiring two wind farms in Hungary, and is also interested in starting operations outside Hungary through the purchase a solar park in central Europe.

Alteo is a B-category issuer at the Budapest Stock Exchange.