Following the update of its MTN Programme registered on 26^th February 2021, International Investment Bank executed its third private placement this year, denominated in the Hungarian forint, in the volume of HUF 8.5 billion (EUR 23.3 million) with the coupon amounting to 1.90% p.a. reaching a record low euro after-swap price of 0.065% p.a. It is the fourth issue denominated in HUF for IIB over the last 2 years making the total amount outstanding HUF 70.7 billion (approx. EUR 192 million), contributing to further development of the bond market.

The deal was organized by UniCredit AG, and placed with 5 Hungarian investors and 3 offshore investors from Germany, France and Czech Republic participating in the transaction.

The coupon of 1.90% represents a spread of around 60 bps over the Hungarian government bonds curve, a tightening of 40 bps compared to the HUF deal executed last September.

“I think it is no coincidence that our new lowest cost of funds comes via the issuance of bonds denominated in HUF, the currency of our host country, immediately after the inauguration of our new location in Budapest, in a beautiful historical building”, concluded Nikolay Kosov, Chairperson of the IIB Management Board.

“Just a week ago on February 26^th we registered our updated MTN Programme and on March 2^nd we organized our second Global Investor Call with a participation of more than 50 investors. Taking advantage of these positive events we were able to use the momentum and execute our third private placement this year, further decreasing overall funding costs”, noted Jozef Kollar, First Deputy Chairperson of the IIB Management Board, in charge of Treasury and Debt Capital Markets.