Starting Friday, the bonds issued by AutoWallis Plc., designated as AutoWallis NKP Bond 2030/I., are up for trading with a total nominal value of HUF 3 billion, after the Budapest Stock Exchange (BSE) approved the Information Memorandum of the corporation, and registered the bonds on the XBond market of BSE. The issuance of the AutoWallis NKP bonds attracted considerable interest and was closed with an oversubscription in April: the institutional investors submitted claims of a total value of HUF 4.15 billion, more than the amount offered. Thus, all of the bonds of a total nominal value of HUF 3 billion offered were subscribed in the transaction, which was prepared and organized by OTP Bank as the investment service provider. The considerable interest related to the bond issuance indicates that the investors have a positive outlook on the corporation’s strategy and its operations so far. The 60 bonds of HUF 50 million nominal value each, with a fixed interest rate of 3% and a maturity of 10 years, were purchased for a total of HUF 3.04 billion with an average yield of 2.827 percent. AutoWallis decided about participating in the favorable financing provided by the Funding for Growth Scheme of the HNB last fall. As a precondition for starting the trading, the corporation acquired the B+ rating of the credit rating agency Scope Ratings last September. 

The NKP is well integrated in the company’s strategic plans, and provides a favorable financing opportunity. The company uses the proceeds to replace parts of the loans of its subsidiaries and its operating lease funds. With the bond issuance, AutoWallis can partially replace its existing short-term and floating rate financing resources to 10-year loans with fixed or low interests, resulting in substantial competitive advantage for the corporation. For the bonds, there are no capital repayment obligations for the maturity period, which provides stability to the cash flow planning.