MBH Bank issued MREL-eligible bonds with a nominal value of €350mn on Wednesday, the lender said on October 12.
MBH Bank had planned to issue €300mn of the bonds but raised the issue amount after investors made offers to subscribe to around €600m of the securities.
The senior preferred bonds have a four-year maturity, pay a fixed rate of 8.625%, and are callable after three years. The purpose of issuing senior unsecured bonds is general corporate financing and serves to meet MREL requirements.
Around half of the four-year bonds were subscribed by international capital market players, it added.
In view of the need to comply with MREL requirements and the increasing need to restructure the customer funding structure from deposits to bonds, MBH Bank plans to renew its current issuance programme with a total amount of HUF400bn (€1bn), the lender said in its H1 2023 report.
MBH Bank completed the three-way tie-up between three mid-sized banks, MKB Bank, Takarekbank and Budapest Bank at the end of April to become the country’s second-largest lender with HUF10.5 trillion (€27bn) in assets, 500 branches, 2mn clients and 10,000 employees. Deposits exceed HUF6.4 trillion and its loan portfolio is close to HUF5 trillion.
Related Articles
Glass wool production restarts in Hungary after 16-year hiatus
Glass wool manufacturing has resumed in Hungary after a 16-year break, as the first trial products rolled off the production line at a new thermal insulation plant built in northeastern Hungary ... more
Referendum finds 95% of Hungarians oppose Ukraine's EU accession - Orban
Hungarian Prime Minister Viktor Orban has declared that an overwhelming majority of Hungarians oppose Ukraine’s accession to the European Union, citing the results of a national referendum ahead of ... more
Most Read
-
Putin to skip Rio BRICS summit over ICC warrant as Xi signals no-show
13 days ago
-
Turkey yet to prove rare earth deposit has suggested “giant” potential despite reported processing talks with China
10 months ago
-
Uproar in Mongolia as development bank reveals scale of risky loans and NPLs
3 years ago