IIB kickstarts the year with 20-year €30mn private bond placement

By bne IntelliNews January 18, 2021

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

UAE's RAKEZ partners with ADIB to ease banking for SMEs and startups

Ras Al Khaimah Economic Zone (RAKEZ) has signed a memorandum of understanding with Abu Dhabi Islamic Bank (ADIB) to simplify bank account opening procedures for its clients, WAM reported.  ... more

European Union increases humanitarian aid to Syria to €202mn

The European Union announced on May 27 an increase in humanitarian aid to Syria to more than €202mn for this year, SANA reported. The additional funding will ... more

Dismiss