AutoWallis completes HUF 6.6 bn green bond issue
The green bonds were significantly oversubscribed at the auction, where institutional investors submitted bids worth HUF 10.75 bn and eventually bought HUF 6.6 billion of the bonds at nominal value. The issuer accepted 10% of the extra demand.
The HUF 50 million 10-year bonds have a fixed 3% coupon and the average yield was 2.89%.
The bond issue took place under the central bank’s Bond Funding for Growth Scheme after Scope Ratings affirmed the issuer rating of AutoWallis earlier this week.
AutoWallis is the first company traded in the premium category of the Budapest Stock Exchange to have implemented a Green Financing Framework, the statement said. The company will use the proceeds of the bonds to finance its growth targets in line with this green framework, undertaking to promote and develop e-mobility, increase the number of charging stations, install fast chargers, and increase the ratio of electric or hybrid cars in its own fleet. It will also make green investments in saving energy in its premises and will make efforts to generate and use energy from renewable sources where possible.
AutoWallis has now issued long-term bonds worth HUF 9.69 bn in the past two years, raising its equity by nearly HUF 6 bn in the process through several deals, CEO Gábor Ormosy said.
The company plans a public issue in the second half, for both institutional and retail investors, to the tune of HUF 4 bn to HUF 6.5 bn. This could contribute to AutoWallis becoming a major player in the CEE region’s car trading and mobility service provider business, the statement said.
AutoWallis shares rose 1% today and have gained 2% this year.
Cover photo: Budapest Stock Exchange
