Hungary MBH Bank launches international bond issue, the largest of its kind
There was robust investor interest in MBH Bank Plc's new international MREL-compliant bond on Tuesday. A total of more than EUR 1.6 billion was offered by investors, more than three times the minimum target set at the launch.
MREL sands for the Minimum Requirement for own funds and Eligible Liabilities. The MREL requires the institutions to hold funds of adequate quantity and quality that can be written off partly or completely or transformed into capital in the case of a crisis situation, thus ensuring the bearing of losses by owners and creditors as well as the continuous performance of the institutions’ critical functions during and following the crisis situation. More info here.
Based on the bids received, the credit institution has finally decided to issue bonds with a total nominal value of EUR 750 million,
the largest MREL-eligible bond transaction ever undertaken by a Hungarian issuer,
MBH said in a statement.
The issuance is part of a €1.5 billion bond programme launched in 2024. MBH Bank issues bonds with a total nominal value of EUR 750 million, with the value date of 29 January 2025. The pricing of the 5-year (callable after four years) Senior Preferred Notes has taken place on 21 January 2025.
Interest in the offering was extremely broad, with a total of 130 investors submitting bids, and more than 80% of the bids received were from international investors.
"The current issuance is significant not only because it brings the bank into compliance with the most stringent international requirements, while creating stable value for its investors, but also because it represents another step in strengthening our presence in the capital markets", commented Péter Krizsanovich, Deputy CEO for Strategy and Finance of MBH Bank.
Cover photo: Portfolio
