Participation in the National Bank of Hungary's Bond Funding for Growth Scheme

To place corporate funding on more than one pillar and to increase liquidity in the corporate bond market, the National Bank of Hungary launched the Bond Funding for Growth Scheme (NKP) on 1 July 2019. Bond issuance can offer larger companies in particular an alternative to bank funding.

Our company has used several forms of financing to date, but bond issuance caught our interest. We therefore applied to the programme through the National Bank's online registration platform in early August 2019. Participation requires a rating of at least B+ from a credit rating agency registered and supervised by the European Securities and Markets Authority (ESMA) and accepted by the National Bank for the purposes of central bank collateral assessment. The rating process began in November 2019 with Scope Ratings GmbH. Concluding the process, the agency published its report on 25 February 2020, finding our company suitable to take part in the bond programme.

Legal preparation of the bond issue, investor discussions and documentation are currently under way, with our own staff supported by an experienced external investment adviser and law firm. The bonds will be issued through a private auction with an order book, with the participation of the National Bank and invited investors, on 13 May 2020.