Hungarian real estate brokerage firm Otthon Centrum has completed an €8 million (HUF 2.9 billion) bond issue under the National Bank of Hungary's (MNB) Bond Funding for Growth Scheme. This marks the first time the company has taken part in the central bank's bond programme.
At the auction held on 15 April, Otthon Centrum issued 10-year fixed-interest bonds at a 2.62% yield. The bonds, which have a nominal value of HUF 2.9 billion, mature on 19 April 2031. Investors placed bids worth HUF 5 billion for the securities at an electronic auction held on the Budapest Stock Exchange.
The company views the bond issue as a success as there was significant demand compared to the amount available, CEO György Kosztolánczy said after the auction. The bond issue also paves the way for further dynamic growth that could reinforce Otthon Centrum's market leader position, and as a well-capitalised company, it may now have the opportunity to make acquisitions abroad and to develop the synergies in its existing systems, he added.
In the CEO’s view, investors appreciated the fact that the company's property and loan brokerage activities are outstanding when submitting bids totalling HUF 5 billion for the HUF 2.9 billion bond package.
