Scope Ratings has received additional information on the key terms of the planned senior unsecured bond issuance under the MNB Funding for Growth scheme. The issuer is planning to issue bonds in a volume of HUF 25bn (+10% maximum oversubscription) as of next week with a 10-year tenor until September 2031 with a fixed coupon of 3.0%, payable annually. The bond will have an annual amortization payment of 10%, starting September 2026 and a final balloon payment of 50% at maturity. The proceeds are earmarked for investments into real estate assets as well as refinancing.

In our most recent rating update as of 30 July 2021 we already incorporated the issuance of up to HUF 30bn senior unsecured bonds within Q3 2021 at similar conditions into our rating base case and do therefore deem the planned transaction to have no impact on the current issuer rating of B+/Positive nor on the current debt class rating of BB- for senior unsecured debt.

This monitoring note does not constitute a credit rating action, nor does it indicate the likelihood that Scope will conduct a credit rating action in the short term.