4iG announces changes to NKP bond repayment terms
4iG has reached an agreement with institutional and banking investors of its corporate bonds issued under the National Bank of Hungary's NKP II framework on new bond terms, according to which
the principal repayment will be due as a lump sum at maturity in 2031, while maintaining continuous interest payments.
This means that no partial repayments will be made during the 2026-2030 period, only interest payments. Along with the modification of the repayment schedule, the interest rate will also change according to the information published on the Budapest Stock Exchange: the bond will have a fixed annual interest rate of 6.00% until 17 December 2025, after which it will change to 6.75% per annum until the maturity date (17 December 2031).
The aim of the agreement was to create a financing structure that aligns with 4iG's long-term growth strategy while providing a predictable and stable framework for the group,
the company stated in its announcement.
Between 2021 and 2024, 4iG's group-level revenue increased more than sevenfold, while EBITDA grew nearly twentyfold. The strengthened earnings capacity and financial stability laid the foundation for establishing new terms for the bond programme. The new terms increase 4iG's financial flexibility and allow the company to focus the significant freed-up resources on its strategic priorities. These include investments in space and defence industries, telecommunications and digital infrastructure, as well as further growth initiatives and targeted acquisitions, 4iG explained.
Scope Ratings examined the new structure as part of a preliminary rating service and deemed the improved liquidity favourable while maintaining the credit rating unchanged.
In the second round of the Growth Bond Programme, 4iG issued bonds with a total nominal value of HUF 370 billion in 2021.
Cover photo (for illustration purposes only): Portfolio
