Green Bond Issued by MFB

The first green bond issue by the Hungarian Development Bank (MFB) was met with keen interest: the auction on the Budapest Stock Exchange raised almost HUF 11 billion in funds, which will help finance green investment by businesses, the bank told MTI on Monday.

They said that MFB raised a total of HUF 10.8 billion in green funds from domestic investors during Monday's HUF bond issue, with a 5-year 2-month maturity and an average yield of 6.93%. As with the 2023 issues, the market has again reassured MFB of its confidence, as evidenced by the fact that the bond auction attracted bids of more than HUF 100 billion. The March 18 issue is the first market-type green bond issue in the bank's history, with more planned to follow in the future, they said.

To support its fundraising activities, the bank has prepared the MFB Sustainable Financing Framework, which is in line with international standards, and commits to use its sustainable resources to finance and/or refinance sustainable objectives with a positive environmental and social impact, in line with green and social criteria.  Supporting both global climate objectives and socially beneficial objectives is an integral part of MFB's strategy and operations. As a development institution, MFB aims to be a catalyst for the sustainability turnaround in the sector, commensurate with its role and weight in domestic financing, the bank said.