The Budapest-based International Investment Bank (IIB) has announced the private placement of a €30mn 20-year bond with a German insurance company to kickstart the year under its MTN Programme, the development bank announced on January 15.
The deal provides for its longest-ever maturity, which helps to improve the overall maturity profile of IIB’s funding and extend the duration of its liabilities, the lender noted.
"This deal sets very positive expectations for our long-term funding for the whole year ahead," commented deputy-chairman Jozef Kollar.
The bond was priced at 90bp over mid-swaps, effectively giving it a 0.95% annual coupon, the lender said. The bonds will be listed on the Dublin Stock Exchange.
Despite the pandemics, IIB has been able to attract an extraordinary volume of new funding, some €600mn, and also break some of its previous funding records in size and price terms, chairman Nikolay Kosov said.
The deal was arranged by Citigroup Global Markets Europe AG, appointed as a dealer of the day under IIB’s MTN Programme registered on the Dublin Stock Exchange.
IIB moved its headquarters to the Hungarian capital from Moscow in 2019. Hungary, which re-joined the IIB in 2015, is now the lender's second-biggest stakeholder.
Related Articles
EBRD extends €100mn in risk-sharing support to two Ukrainian banks
The European Bank for Reconstruction and Development (EBRD) has signed portfolio risk-sharing facilities with two Ukrainian banks, UKRSIBBANK BNP Paribas Group and ProCredit Bank Ukraine (PCBU). The ... more
Austria’s RBI ups profit in Russia in 1Q25
Austria's Raiffeisen Bank International (RBI) increased its pre-tax profit in Russia in 1Q25 by over 25% year on year to €575mn ($651mn) due to the stronger ruble, Reuters reports. In ... more
Erste Group buys 49% of Santander’s Polish unit for €6.8bn
Erste Group acquired a 49% stake in Santander’s Polish bank for approximately €6.8bn, the Austrian lender said on May 5. The Austrian bank, the country’s largest, also agreed to purchase 50% ... more
Most Read
-
Armenia courts African countries to supply diamond industry
17 days ago
-
Russia’s Alrosa finds its largest diamond ever, as Mirny mining operations restart
1 day ago
-
COMMENT: Embracing “Greater Central Asia” has become a strategic imperative for US
11 days ago
-
From blood diamonds to critical minerals: Sierra Leone’s mining transformation
18 days ago