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EBRD invests in covered bonds in Hungary

By Axel  Reiserer

  • Local currency investment in covered bonds issued by UniCredit Jelzalogbank Zrt.
  • UniCredit to fund green projects
  • Strengthening of local covered bond market in volatile environment

Despite a very volatile environment on the debt capital market across Europe, UniCredit Mortgage Bank (UniCredit Jelzalogbank Zrt.) has successfully completed the issuance of a HUF 15 billion covered bond with a 5 years-tenor thanks to strong investors demand.

The EBRD supported the issuance as one of the key non-Hungarian institutional investors with an investment of HUF 4.5 billion (€13 million equivalent). The covered bonds will be listed on the Budapest Stock Exchange.

The investment further strengthens the Hungarian covered bond market, as well as facilitates continued residential mortgage lending of UniCredit Mortgage Bank and its long-term funding base. It will also support the green economy, as UniCredit Bank will undertake to invest an amount corresponding to at least 100 per cent of the EBRD investment towards funding green projects in accordance with the EBRD Green Economy Transition approach.

In addition to its role as an investor, the EBRD is supporting the green capital market development in Hungary  through its engagement in policy reform, working closely with the Hungarian Central Bank in the framework of the EU Structural Reform Support Programme.

As one of the leading banks in Hungary, UniCredit Bank Hungary offers a wide range of services including retail and business lending, factoring, wealth management and investment banking services, among others.

The EBRD has been operating in Hungary since 1991 and to date has invested almost €3.2 billion in 184 projects.

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