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Raiffeisen to lend Ft 3.5 bln to MÁV

Raiffeisen Bank Zrt won a tender to provide state-owned Hungarian railway MÁV Zrt overdraft loans worth a combined Ft 3.5 billion, MÁV announced on Friday.

MÁV called a tender to provide it with overdraft loans of Ft 5 billion, but received offers for only Ft 3.5 billion. Raiffeisen will provide two loans, for Ft 1.5 billion and Ft 2 billion. MÁV said Raiffeisen has agreed to provide the loans at 15bp over the one-month BUBOR, which was 6.93% on Friday. The loans carry no other commissions or fees.
The contract for the loan is expected to be signed on August 11. The loans are intended to secure liquidity at the rail company.