MBH Bank: extraordinary interest in new international bond

MBH Bank Plc. saw strong investor interest in its new international MREL-eligible bond on 21 January 2025. More than EUR 1.6 billion was offered by investors, which amounts to a more than three times oversubscription compared the minimum target set at launch. On the basis of the bids received, the credit institution finally decided to issue bonds with a total nominal value of EUR 750 million, making it the largest MREL-eligible bond transaction ever undertaken by a Hungarian issuer. The bids also confirm MBH Bank's recognition and acceptance in the international capital markets and among international investors.

The new international bond issue of MBH Bank Plc. is part of the EUR 1.5 billion bond programme launched in 2024. The issue was heavily oversubscribed, with investors bidding for a total nominal amount of more than EUR 1.6 billion, of which in the end MBH Bank accepted bids for EUR 750 million. The bonds, which will have a maturity of 5 years and will be recallable after 4 years, will be issued as ordinary unsecured claims with a value date of 29 January 2025. The bonds are used to meet the bank's MREL requirements, i.e. minimum requirements for own funds and eligible liabilities.

Interest in the issue was very extensive, with 130 investors submitting bids and more than 80 percent of the bids received coming from international investors. The transaction will also enhance MBH Bank's visibility and recognition and will help MBH Bank achieve its planned capital market upgrades both domestically and internationally.

“This latest issue is significant not only because now we can meet the highest international requirements while creating stable value for investors, but also because it represents another step in strengthening our presence on the capital markets”, added Péter Krizsanovich, Chief Strategy and Finance Officer at MBH Bank.