Press Releases
Magyar Telekom concluded a successful bond auction
Budapest, November 24, 2020 15:30
Magyar Telekom announces that today it held a successful bond auction for qualified investors in the frame of the Bond Funding for Growth Scheme of the Central Bank of Hungary.
Following the auction, Magyar Telekom 2027 HUF Bonds will be issued on November 26, 2020 with the following parameters:
| Bond code | Magyar Telekom 2027 HUF Bond |
| ISIN code | ISIN HU0000360128 |
| Time of auction | November 24, 2020 |
| Date of delivery | November 26, 2020 |
| Bond expiry | November 26, 2027 |
| Offered quantity at face value | HUF 70 billion |
| Bids submitted at face value | HUF 96.95 billion |
| Accepted quantity at face value | HUF 70 billion |
| Amount of cash proceeds (face value * average price * quantity) | HUF 70.83 billion |
| Interest type | Fix interest |
| Coupon | 1.45 % |
| Average price | 101.1913 % |
| Yield | 1.2579 % |
| Value of mid-swap closest to maturity | 1.255 % |
| Spread over mid-swap | 0 bp |
Tibor Rékasi, Magyar Telekom’s CEO commented: “Today’s bond issue transaction is the most sizeable one in our corporate history thus far. In line with our earlier communication our ambition is to use the proceeds of the bonds to further extend our gigabit-capable fixed network that now has 2.3 million access points and to increase 5G coverage, as well as to fund frequency license acquisitions in the upcoming period.”
Darja Dodonova, Magyar Telekom’s CFO commented:
“I’m very glad that we have seen significant interest from potential lenders allowing us to achieve forint denominated financing
at competitive terms.”
The Company initiates the registration of the bonds to the Xbond multilateral trading platform of the Budapest Stock Exchange within 90 days following the issuance.