On 9th November 2020, the Hungarian Export-Import Bank Plc. held yet another successful auction: with the simultaneous auctions of bonds No. 1/2021 and 1/2027 the bank succeeded to raise an amount of more than HUF 60 billion.
At the auctions co-organised with ERSTE Bank, investor demand for the second series of bond No. 1/2021 of one-year maturity at 1% nominal interest totalled more than HUF 71 billion, of which bonds worth HUF 29.5 billion were traded at nominal value. There was a demand of more than HUF 62 billion for the first series of the bond with seven-year maturity at 2% nominal rate (maturing in 2027), of which HUF 30.4 billion was issued at nominal value.
So far, this has been the largest bond issuance in the history of the Hungarian Export-Import Bank Plc. under Hungarian legislation. The length of the bond maturity is also unprecedented in the history of both Hungarian and foreign issuances. On 9th November 2020, Eximbank also signed an international, bilateral loan contract with a three-year maturity of the value of EUR 200 million.
All these steps play a key role in ensuring that EXIM can meet the increased expectations and higher demands for credit in the new economic environment caused by the coronavirus pandemic. ‘We consider it important to mention that the funds raised through the bond issuance are well-aligned with the maturity structure of Eximbank resources. Eximbank manages resources from money markets; accordingly the bank raised funds from the market by borrowing and issuing bonds. The appropriate diversification of our source structure contributes to our endeavour to be able to assist our clients with a product portfolio corresponding market requirements to a large extent.’ – stated Gergely Jákli, CEO, Chairman of the Board of Directors at EXIM Hungary, who added: ‘The unprecedented 7-year bond issuance also promotes our strategic objective, which is to be able to provide financing support also for the investment and development plans of Hungarian export companies. We regard the high interest of our clients and the record bond purchases as a sign of enhanced market confidence that reaffirms the need for our export promotion role.’