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.


Related Articles

Moody's affirms K&H's 'A3' long-term deposit ratings

Credit rating agency Moody's affirmed the A3/P-2 long- and short-term deposit ratings of K&H Bank, the Hungarian unit of KBC, with a stable outlook. It also affirmed K&H's ba1 Baseline Credit ... more

Hungary’s OTP mulls acquisition in Ukraine

Ukraine is putting two state-owned banks up for sale and OTP is interested in buying one of them, financial website Portfolio quotes Economichna Pravda’s report citing people familiar with the ... more

Romania’s leading lender Banca Transilvania takes over OTP Bank’s subsidiary

Romania’s largest financial group by assets, Banca Transilvania (BVB: TLV), announced that it had signed a contract ... more