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Baromfi-Coop raises HUF 23.45 bln via green bond

MNB

Photo by Campre/Shutterstock.com

Poultry company Baromfi-Coop has secured HUF 23.45 billion of financing with the issue of a green bond under the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB) according to auction data posted on the website of the Budapest Stock Exchange.

Baromfi-Coop offered HUF 23 bln of the 10-year bonds at the auction yesterday. Bids reached HUF 46.1 bln. The average yield for the bond, which carries a 3% coupon, was 2.7331%, two basis points over mid-swaps.

The proceeds from the issue will be used for the financing of 13 green projects, including among other things installing solar cells in 10 livestock farms and in a hatchery plant, expansion of the hatchery's capacity, extension and upgrading of a feed mixing plant, expanding a drying plant, and the construction of crop storage silos.

The MNB launched the BGS in the summer of 2019 to beef up Hungary's relatively small corporate bond market. The program allocation stands at HUF 1.15 trillion.

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