MBH Bank Issues New International Bond

There was strong investor interest in MBH Bank Plc's new international MREL-eligible bond 2025 on January 21, according to the financial institution. A total of more than EUR 1.6 billion was offered by investors, which is more than three times the minimum target set at the start of the offering, the bank told MTI on Wednesday.

Based on the bids received, the credit institution finally decided to issue bonds with a nominal value of EUR 750 million, the largest MREL (minimum requirement for own funds and eligible liabilities) transaction ever carried out by a Hungarian issuer.

The statement expressed the view that the bids received also confirm MBH Bank's recognition and acceptance in the international capital markets and among international investors.

The new international bond issue of MBH Bank Plc is part of the EUR 1.5 billion bond program launched in 2024. The bonds will have a maturity of 5 years, callable after 4 years and will be issued as ordinary unsecured debt with a maturity date of January 29, 2025.

The bond will be issued at 99.620% of par value with an interest rate of 5.250% and a yield of 5.358%, the bank told MTI.

The issue attracted a total of 130 investors submitting bids, with more than 80% of the accepted bids coming from international investors.

"The current issue is significant not only because it brings the bank into compliance with the highest international standards while creating stable value for its investors, but also because it represents another step in strengthening our presence in the capital markets," the statement quoted Péter Krizsanovich, MBH Bank's Deputy CEO for Strategy and Finance, as saying.