AutoWallis assigned ‘B3’ issuer rating for BGS participation
AutoWallis has been assigned a B3 issuer rating by Scope Ratings, the listed automotive holding said in a statement, adding that it is seriously considering participation in the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB).
AutoWallis, which is listed in the Equities Prime category of the Budapest Stock Exchange (BÉT), said it is considering several options for the source of funding to implement its strategy, including the possibility of issuing bonds of around HUF 3 billion as part of the BGS, state news wire MTI reported.
CEO Gábor Ormosy said the assignment of the rating is an important milestone for the company, but noted that AutoWallis is not expected to take a decision on the details of a possible bond issue and on ways to utilize the funding before late fall.
Other participants in the central bankʼs corporate bond scheme that have been rated by Scope include alternative energy company Alteo, construction firm Market Építő, auto parts seller Unix Autó, property developer Wingholding, listed holding Opus Global, biorefinery business Pannonia Bio, real estate investor Proform, and road builder Duna Aszfalt.
The MNB launched the HUF 300 bln scheme on July 1, 2019, with the aim of beefing up Hungaryʼs relatively small corporate bond market. The program limits the MNBʼs purchases to 70% of a series and caps its exposure to any corporate group at HUF 20 bln.
Last week, it was reported that some 145 companies with combined total assets nearing around 15% of GDP have registered to date in the MNB’s scheme.
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