The green bonds are to be issued under the Bond Funding for Growth Scheme (BGS), implemented by the National Bank of Hungary (MNB) to increase the liquidity of the local bond market. The issuer is to be the group’s subsidiary, CPI Hungary Investments, with an unconditional guarantee from CPIPG. Following an auction during the week commencing August 3rd 2020, CPIPG expects to issue HUF 30 bln (app. EUR 86 mln) of senior unsecured bonds with a ten-year maturity and a coupon in HUF of about 2.25 pct.
Proceeds from the transaction are to be used for general corporate purposes, which may include capital expenditure, acquisitions, developments, debt repayment or the retention of cash.
CPIPG is proud of our diverse bond investor base and our ability to access unique sources of long-term financing. The group is pleased that our participation in the BGS will result in Hungary’s first corporate green bond transaction, thus creating an important new benchmark for the local market.
CPIPG has a Hungarian portfolio of income-generating real estate valued at €667 million as of year-end 2019. The group’s properties include the Balance Building, Hungary’s first ‘conscious’ office building, designed to help tenants cut energy consumption.
Issuing green bonds under the BGS reflects our deep commitment to the sustainability and well-being of our properties, partners and tenants in Hungary.
Source: Eurobuild CEE