Debrecen's Szinorg raises close to HUF 5 billion in capital

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. The Master Good group, owned by László Bárány and his family of Debrecen, has already taken part in the programme, as has Debrecen-based Trans-Sped, which raised HUF 5 billion in capital through the transactions.

A successful bond auction held by the Szinorg group, which includes Hunép.

Debrecen-based Szinorg Universal Zrt. — whose companies include Hunép, Hun-Office Kft., Hajdu-Alu Zrt. and HC Építő Kft. — has been assigned a B rating with stable outlook by Scope Ratings, with the company's bonds rated B+, according to Portfolio's report.

Szinorg Universal Zrt. was therefore able to take part in the Bond Funding for Growth Scheme, and held a successful bond auction on 13 May. 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 Szinorg group includes Hunép Zrt., known as the contractor on numerous major projects in Debrecen. The Group's projects with the Debrecen municipality also included Forest Offices, which was sold to a private investor last year.

Sources: dehir.hu, civishir.hu