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Budapest bourse to trade BTel corporate bonds from Wednesday

Some HUF 302 million worth of corporate bonds issued by Hungarian telco Business Telekom (BTel) and subscribed by retail investors will be traded on the Budapest Stock Exchange from Wednesday, the bourse said on Tuesday.

BTel said earlier it would use the proceeds from the issue to cover investments for which preparations have already been made, mainly the further development of its microwave network and the launch of SAT TV services.

The bonds mature on August 22, 2014. They carry a fixed annual coupon of 12.5%.

BTel had revenue of HUF 1 billion in 2010, up from HUF 819 million in 2010. Net profit fell to HUF 50 million from HUF 144 million during the same period.

The company had total assets of HUF 1.1 billion on December 31, 2010, up from HUF 617 million twelve months earlier.