News Article bonds CPI financing green Hungary issue
by Property Forum | Investment

On 5 August 2020, CPI Property Group auctioned HUF 30 billion (about €86 million) of senior unsecured green bonds with a 10-year bullet maturity. The bonds carry a coupon in Forint of 2.25% and were sold at a yield of about 2.02% following a robust investor response with bids of more than HUF 45 billion received at auction. The issuer was the Group’s subsidiary CPI Hungary Investments Kft., with an unconditional guarantee from CPIPG. Raiffeisen Bank Zrt. acted as sole mandated lead arranger on the offering.

The Bonds were issued under the Bond Funding for Growth Scheme (BGS), which was implemented by the National Bank of Hungary (MNB) to increase the liquidity of the local bond market. CPIPG is the second company headquartered outside of Hungary to issue under the BGS, following a successful transaction by a subsidiary of Daimler AG in March 2020.

“CPIPG is delighted with the success of this transaction and appreciates the strong support of the MNB,” said David Greenbaum, CFO of CPIPG. “The Group has now completed four green bond transactions in three currencies, an achievement matched by less than ten other corporate issuers around the world.”

Proceeds from the Bonds will be used for general corporate purposes which may include capital expenditures, acquisitions, developments, debt repayment or retention of cash. Proceeds will be allocated in line with the Guarantor’s Green Bond Framework.