Investor News
Magyar Telekom concluded a successful bond auction
Budapest, November 24, 2020 15:30
Magyar Telekom (Reuters: MTEL.BU and Bloomberg: MTELEKOM HB, hereinafter, the “Company”), the leading Hungarian telecommunications service provider 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 fund investments related to the Company’s fixed and mobile
network roll-out and modernizationas
well as 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.
This
investor news may contain forward-looking statements. Statements that are not
historical facts, including statements about our beliefs and expectations, are
forward-looking statements. These statements are based on current plans,
estimates and projections, and therefore should not have undue reliance placed
upon them. Forward-looking statements speak only as of the date they are made,
and we undertake no obligation to update publicly any of them in light of new
information or future events.
Forward-looking
statements involve inherent risks and uncertainties. We caution you that a
number of important factors could cause actual results to differ materially
from those contained in any forward-looking statement. Such factors are
described in, among other things, our Annual Reports for the year ended
December 31, 2019 available on our website at https://www.telekom.hu.