MBH issues €350mn of bonds to meet MREL requirements

By bne IntelliNews October 13, 2023

MBH Bank issued MREL-eligible bonds with a nominal value of €350mn on Wednesday, the lender said on October 12.

MBH Bank had planned to issue €300mn of the bonds but raised the issue amount after investors made offers to subscribe to around €600m of the securities.

The senior preferred bonds have a four-year maturity, pay a fixed rate of 8.625%, and are callable after three years.  The purpose of issuing senior unsecured bonds is general corporate financing and serves to meet MREL requirements.

Around half of the four-year bonds were subscribed by international capital market players, it added.

In view of the need to comply with MREL requirements and the increasing need to restructure the customer funding structure from deposits to bonds, MBH Bank plans to renew its current issuance programme with a total amount of HUF400bn (€1bn), the lender said in its H1 2023 report.

MBH Bank completed the three-way tie-up between three mid-sized banks, MKB Bank, Takarekbank and Budapest Bank at the end of April to become the country’s second-largest lender with HUF10.5 trillion (€27bn) in assets, 500 branches, 2mn clients and 10,000 employees. Deposits exceed HUF6.4 trillion and its loan portfolio is close to HUF5 trillion.

 
Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Hungarian IT company iCell introduces Smart Parking project in Uzbekistan

Leading Hungarian IT company iCell has launched its "Smart Parking" project in Tashkent, aiming to revolutionise parking management within the city, Daryo ... more

UniCredit SpA is eyeing acquisition of Luminor Estonia Bank

UniCredit SpA is eyeing acquisition of Luminor Estonia Bank and is now vying with Hungary’s largest lender, OTP Bank Nyrt, to acquire the Baltic bank, Bloomberg reported. Estonia-based ... more

Fitch Ratings affirms Hungarian Eximbank's BBB rating

Fitch Ratings has affirmed Eximbank's long- and short-term issuer default rating (IDR) at 'BBB/F-2' with a negative outlook on June 19. The rating is in line with Hungary's sovereign rating. The ... more

Follow Us On

Most Read

  1. Dubai heatwave: Temperature feels like 62°C as scientists explain extreme conditions
    9 days ago
  2. Six out of nine “planetary boundaries” have been crossed and a tenth has appeared
    2 days ago
  3. How energy intensive are data centers?
    2 days ago
  4. Earth records hottest year since records began
    2 days ago
  5. Plants absorbing less carbon dioxide in 2023, accelerating global warming
    1 day ago
  1. Dubai heatwave: Temperature feels like 62°C as scientists explain extreme conditions
    9 days ago
  2. Russia overtakes Japan to become the fourth largest economy in the world in PPP terms
    1 month ago
  3. Global access to energy starts to fall for the first time in a decade, says IEA
    25 days ago
  4. LONG READ: The war in Ukraine is inching towards a ceasefire as pressures mount
    19 days ago
  5. Fresh evidence suggests that the April 2022 Istanbul peace deal to end the war in Ukraine was stillborn
    3 months ago

Reports

Dismiss