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Insurer CIG issues HUF 1 billion in bonds, seeks further €30 million

Hungarian-owned insurance company CIG Közép-európai Biztosító has issued HUF 1.12 billion of corporate bonds that were subscribed by its current owners, supervisory board chairman Zsigmond Járai said at a press conference on Wednesday.

The company is in talks with a European bank and a Hungarian venture capital company on a €30 million capital injection, said chairman-CEO Béla Horváth. The talks could yield a result within six months, he added.

CIG issued the 2.2 million bonds subscribed by its 48 owners after it failed to get a HUF 1 billion loan from Hungarian banks. The bonds were sold for HUF 40 apiece and may be converted into shares after seven years or redeemed for €1.57 apiece.

CIG's office in Romania will start selling life insurance policies through some 600 agents from the start of June.

CIG's next targets will be markets in Bulgaria, Serbia and Croatia, Járai said.

CIG has postponed entering the general insurance market for another two years, Horváth said, answering a question. (MTI-ECONEWS)