Nestlé Hungária raises HUF 116.7 billion with BGS bond issue
Production underway at Nestlé’s animal feed plant in Bük.
Nestlé Hungária, the local unit of the Swiss food giant, raised HUF 116.7 billion through the sale of bonds issued under the National Bank of Hungary’s (MNB) Bond for Growth (BGS) program , according to the MTI press release reports, citing auction data released by the Budapest Stock Exchange.
Nestlé Hungária offered HUF 115 billion seven-year bonds at a coupon of 1.75% at Thursday’s auction. Bids reached HUF 196.8 billion.
The average yield was 1.53%, 96bp under mid-swaps.
The company told MTI that it will use the show’s proceeds to fund its operations in Hungary and to complete the expansion of its Purina animal feed plant in Bük announced in October 2020.
Nestlé Hungária achieved net sales of HUF 164.2 billion in 2020. It employs more than 2,400 people in three factories across the country.
MNB launched the BGS in the summer of 2019 with the aim of strengthening the relatively small Hungarian corporate bond market. The program allocation is HUF 1.15 billion.
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