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International Investment Bank bonds are now traded at BSE

posted onMarch 28, 2019
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Wednesday (March 27) saw the launch of trading in securities of International Investment Bank (IIB) on the Budapest Stock Exchange (BSE). An official ceremony took place and traditionally began with ringing the stock exchange bell.  

During a successful bond auction held on March 20, bonds with a total maturity of 3 years carrying a fixed coupon of 2% totalling HUF 24.7 billion, were sold to a broad investor base including banks, investment funds and insurance companies.

Through the transaction, which was implemented with OTP Bank and UniCredit Bank as Lead Arrangers, the securities of IIB are now listed on the Budapest Stock Exchange after the Bratislava, Bucharest, Moscow, Prague and Vienna trading floors.

IIB had entered debt capital markets for the first time in 2014. 

"After successful bond issuances in Russian rubles, Euro, Romanian lei and Czech koruna, IIB is successfully achieving one of its key strategic goals of promoting the development of capital markets of member states, in this case Hungary, thus fulfilling its mission as a multilateral development bank" IIB said.

The proceeds from the bonds will be used by the IIB to expand its lending and investment activity in the interest of all member states. 

“In our market development strategy, we focus on promoting financing via bond issuances and developing our international relationships and we are delighted that the International Investment Bank will soon be the second foreign bond issuer at the Budapest Stock Exchange” Chairman and CEO of the Budapest Stock Exchange Richárd Végh, said in a statement.

For his part, Jozef Kollar, First Deputy Chairperson of the IIB Management Board, who is responsible for funding and treasury operations of the Bank, stated:

“Through issuances in local currencies IIB is successfully achieving one of its key strategic goals of promoting the development of capital markets of member states, in this case Hungary, thus fulfilling its mission as a multilateral development bank.”

Addressing the event participants State Secretary of the Hungarian Finance Ministry Gabor Gion stressed the significance of the event since it helps to underline the attractiveness of the local capital market and increases the importance of the country as a key regional financial centre.

“IIB consistently builds its operations in accordance with best practice and standards of international development institutions that is noted by all leading rating agencies”, Gion said. 

Founded in 1970, and headquartered in Moscow, International Investment Bank is currently owned by 9 sovereign states (Bulgaria, Cuba, Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia, Vietnam). Its mission is to promote social and economic development, increased prosperity, and economic cooperation between its member states, with a focus on small and medium-sized enterprises. 

The bank was given an A- rating in the first half of the month by S&P Global. The headquarters of the bank is moving to Budapest this year.

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