KÉSZ Group prepares to issue new bonds

After the issue of bonds in a value of 20 billion forints this March, KÉSZ Group, a group of companies holding in Hungary one of the most diversified portfolio now plans to issue bonds in a value of 10 billion forints. The BB stable credit-rating qualification of both the company and the bond has been confirmed for the second-round bond issue. KÉSZ Group intends to spend the new capital of 10 billion forints first of all to extend its construction capacity and to enhance efficiency, as well as to extend its real estate portfolio.

After the successful bond issue of 20 billion forints in the first round, KÉSZ Group plans to issue 10-year term bonds in a value of 10 billion forints in the framework of the Growth Bond Program of the Central Bank of Hungary.

In the course of the Growth Bond Program (GBP) launched in 2019, the Central Bank of Hungary will purchase good, minimum B+ rated bonds issued by non-financial companies in a frame amount of 1,550 billion forints. The central bank's objective is to ensure that the domestic companies rely not only on bank loans but also on other forms of funding to an appropriate extent.

The transaction required repeated credit rating of the company and the bonds to be issued and KÉSZ Group received its result in these days. Scope Hamburg GmbH confirmed the BB stable credit rating of KÉSZ Holding Zrt. as issuer, as published on 29 October, and extended the BB stable rating of the first-round bonds also to the second-round bonds. By this KÉSZ Group has the best company rating in the Hungarian construction industry. The credit rating company emphasized that it stated stable prospects both for KÉSZ Holding and the Bond and it notes in addition to the positive factors emphasized previously that both its sales revenue and profitability considerably improved in 2020 and this fact is supported also by the 2021 semiannual business reports. Furthermore, it evaluates positively the high proportion of the works already contracted for 2022 and 2023.

“The new resources received from the second successful issue will be spent by KÉSZ Group first of all to extend its construction capacity and to enhance efficiency, as well as to extend its real estate portfolio” - said Tamás Vida, CEO of KÉSZ Group.

In 2020 KÉSZ Group booked a record consolidated sales revenue and it forecasts a two-digit growth for 2021 as well. 

The date of the planned auction is 15.11.2021.