Szinorg Universal Zrt. holds a successful bond auction

The National Bank of Hungary launched its corporate bond purchase programme last summer, raising its budget to HUF 450 billion in December. One condition of taking part in the Bond Funding for Growth Scheme is that companies obtain a rating of at least B+ from a credit rating agency. Scope Ratings has been assessing Hungarian companies planning bond issues throughout last year and this; it published its assessment of Szinorg Universal Zrt. in February, assigning the company a B rating with stable outlook and rating its bonds B+ — the National Bank's minimum requirement for admission to the Bond Funding for Growth Scheme.

It was announced today that Szinorg Universal Zrt. held a successful bond auction on 13 May 2020. For the company's bond (SZU2030) the financial settlement date is 15 May 2020 and maturity is 15 May 2030. The amount offered was HUF 5 billion at nominal value, and total bids submitted came to HUF 5.8 billion at nominal value. The total issue amounts to HUF 5 billion at nominal value, and the funds raised (nominal value * average sale price * quantity) to HUF 4.83 billion.

The company's bond carries a fixed rate with a coupon of 3 per cent. The average sale price was 96.67 per cent and the average yield 3.41 per cent. The HUF (mid) swap closest to the paper's maturity is 1.52 per cent, giving a spread of 189 basis points over the HUF swap.

Source: portfolio.hu