Appeninn Nyrt. has raised more than HUF 20 billion to implement its growth plans and reduce its financial market risks under the Hungarian National Bank's Growth Bond Programme. The corporate bonds, subscribed by the central bank and qualified institutional investors, have a maturity of 10 years and a yield of 3.44 percent.

Appeninn's bond issuance under the MNB's HUF 300 billion Growth Bond Programme launched on 1 July 2019 has been successfully completed. In the announced private placement, the central bank and qualified institutional investors subscribed for 400 corporate bonds with a nominal value of HUF 50 million, in line with the company's preliminary fundraising plans. The securities have a 10-year maturity, with full principal repayment to be made at the end of the term. The total value of the funds raised is HUF 20.1 billion. The average yield of the bonds is 3.44 percent.

The funds raised from the bond issue will be used by the real estate company to implement its growth and acquisition plans, while the favourable fixed interest rate will also allow it to significantly mitigate its financial market risks. The bond issue also has the advantage of providing the company with a source of funds without real estate collateral.

On 1 October 2019, Appeninn received the credit ratings required to participate in the programme from Scope Ratings GmbH, registered by the European Securities and Markets Authority (ESMA). The company itself has been rated B+, while its unsecured bonds have been rated BB-; the international rating agency gave a positive assessment of, among other things, the 97 percent occupancy rate of the company's real estate. The company's Board of Directors also received authorisation from the General Meeting of Shareholders on 5 November to proceed with the bond issue.

Tamás Bernáth, Chairman and CEO of Appeninn Nyrt., said that the successful bond issue is a sign of confidence in the company. The company's growth strategy is based on shifting its portfolio towards higher quality, higher value and higher yielding properties through acquisitions and sales at favourable market conditions, thus increasing shareholder value. Thanks to its favourable fixed interest rates and long maturity, the Growth Bond Programme offers the company an excellent financing opportunity to do so, while also helping to reduce its financial market risks.