Magyar Telekom concluded a successful bond auction

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 R kasi, 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.

LINK:	https://www.telekom.hu/about_us/press_room/press_releases/2020/novembe...
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