The International Bank for Economic Co-operation has replenished its treasury portfolio with securities from Central and Eastern Europe. The total volume of purchases amounted to EUR 30 million, of which 23 million are securities for IBEC's own portfolio. Investments have replenished the loan and investment portfolio and the “development portfolio” of IBEC.
The Bank took part in the placement of the debut issue of green bonds of the Polish developer and investor in the field of commercial real estate Globe Trade Center S.A. The issue volume is EUR 500 million with an annual coupon yield of 2.25%. The funds will be used to refinance real estate loans and finance renovation, construction and acquisition of LEED / BREEAM certified assets (two major international environmental standards for real estate) and will be allocated in accordance with the Green Bond Framework principles. The aggregate demand for securities exceeded EUR 1.4 billion. The successful placement underlines GTC's solid market position and investor confidence in the company. On the eve of the placement, the issuer received an investment grade rating of BBB- with a stable outlook from Fitch and a rating of Ba1 with a positive outlook from Moody's.
IBEC also invested available funds in 10-year Eurobonds of the Slovak company SPP-distribúcia a.s., the monopoly gas distributor on the Slovak market. The total volume of the issue is EUR 500 million, and the issue is rated A- (stable) from Fitch and Baa2 (stable) from Moody's. The yield on the purchased securities is 1.04%.
Hungarian Development Bank (HDB) became another issuer that attracted the attention of IBEC. HDB is a development finance institution wholly owned by the Hungarian state. Its main tasks – promoting economic development, providing financing for small and medium-sized businesses, supporting employment, increasing the technological level of national industry and energy efficiency, protecting the environment – are fully consistent with the goals of the IBEC.
The volume of the issue of five-year Eurobonds amounted to EUR 500 million, ratings of the issue are Baa3 with positive outlook from Moody's and BBB with stable outlook from Fitch, coupon 0.375%, purchase yield – 0.43%. IBEC acquired securities for EUR 15 million euros, including 10 million for the Bank's own portfolio.IBEC investments in the debt market in June made it possible to balance the treasury portfolio geographically, increasing its exposure on the Eastern Europe. The Bank's investments are aimed at projects supporting the development of a green economy and, more broadly, the Sustainable Development Goals.