Hungary’s MBH Bank has completed a successful €200mn Tier 2 bond issuance amid strong investor appetite. The ten-year notes, callable after five years, are priced with a 6.875% coupon following an orderbook exceeding €700mn, representing a 3.5-times oversubscription. Roughly 85% of the accepted bids came from international investors, Hungary’s second-largest lender said.
The transaction, due to settle on May 8, supports the bank’s regulatory capital position and MREL (minimum requirement for own funds and eligible liabilities) compliance. The issuance follows a successful MREL bond deal earlier this year and is part of a broader strategy to expand MBH’s international capital markets footprint.
Deputy CEO Peter Krizsanovich called the results of the bond issuance a milestone in its diversification and capital-strengthening efforts.
The deal was arranged by three investment banks, including MBH Investment Bank, which led the domestic institutional tranche.
MBH Bank was created from the merger of three mid-sized banks, MKB Bank, Takarekbank and Budapest Bank, in 2023. The merger of two state-owned banks and one owned in majority by Lorinc Meszaros was part of a government-supported drive to consolidate the banking sector and create a national champion, a rival to market leader OTP, thus boosting the share of domestic ownership in the banking sector to over 50%.
Related Articles
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
Saudi Arabia's BSF begins issuing dollar-denominated sukuk to strengthen bank capital
Banque Saudi Fransi (BSF) has begun issuing additional Tier 1 capital sukuk denominated in dollars, Al-Eqtisadiah reported on April 30. BSF said in a statement on Tadawul that the offering is ... more
Russian VTB Bank surprises with $3bn dividend for 2024
The board of Russia’s second-largest bank state controlled VTB recommended paying out RUB275.8bn ($2.97bn) in total dividends for 2024, according to Interfax corporate disclosure portal. As ... more