Chicago, Oct. 13 – MBH Bank Nyrt. used the Wednesday market to price its debut issue of senior preferred bonds (Ba2), according to a press release and early details from a market source.
The €350 million deal was upsized from an initial €300 million size.
The four-year notes will come with three years of call protection.
Citi, Erste Group, ING, MBH Bank and UniCredit are the joint lead managers.
The notes will be issued under the bank’s €1.5 billion euro medium-term note program.
Early feedback had the notes coming in the 8¼% to 9% area.
The bank’s deputy chief financial officer Peter Krizsanovich said that “the keen interest in the bond issue confirms the trust and recognition of the investors, fund managers and financial institutions towards the performance and reliability of MBH Bank. We are particularly pleased that more than half of the finally accepted offers were submitted by foreign investors. The current bond issue is a significant milestone in MBH Bank becoming an international market player."
The bank reported that the order book was around €600 million.
Proceeds will be used for general corporate financing.
MBH Bank is formed from the merger of MKB Bank Nyrt., Budapest Bank Zrt. and Takarekbank Zrt.
| Issuer: | MBH Bank Nyrt.
|
| Amount: | €350 million
|
| Issue: | Senior preferred bonds
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| Tenor: | Four years
|
| Bookrunners: | Citi, Erste Group, ING, MBH Bank and UniCredit
|
| Call features: | Three years of call protection
|
| Trade date: | Oct. 11
|
| Settlement date: | Oct. 19
|
| Ratings: | Moody’s: Ba2
|
| Price talk: | 8¼% to 9% area
|
| Marketing: | Investor calls
|
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