The National Bank of Hungary (NBH) announced its first purchase on Monday under the recently launched Bond Funding for Growth Scheme (BGS), an initiative to beef up Hungary’s relatively small corporate bond market. The NBH did not reveal the issuer but said it would publish the parameters of bonds it purchases on its website at the end of each month.
The NBH launched the 300 billion forint BGS on July 1, 2019. The programme rules limit the NBH’s purchases to 70% of a series and caps its exposure to any corporate group at 20 billion forints. Participants in the BGS are alternative energy company Alteo, construction company Market Épitő, auto parts seller Unix Auto, property developer Wingholding, listed holding company Opus Global, biorefinery business Pannonia Bio, real estate investor Proform, food businesses Bonafarm and Pick Szeged, road builder Duna Aszfalt, building material maker Masterplast, property developer Cordia International and gas distributor TIGAZ.