ANNUAL REPORT 2011 - Magyar Fejlesztési Bank Zrt.

❙ 5. FUNDING
With BNP Paribas, ING Bank N.V. and Société Générale acting
as lead managers, MFB concluded a EUR 500 million 5 year
international public bond issue with value date on 31 May 2011.
The annual interest rate of the bond is 5.875%, while its primary
yield was 3.2% higher than the midswap rate for the relevant
maturity. MFB returned to the international money market as an
issuer after a break of almost 4 years. In order to match the interest
rates on the asset and the liability side the Bank partially swapped
the funds from fixed into floating rate.
MFB raised EUR 180 million via bilateral loan agreements and
Schuldscheins in 2011.
In 2011, the Bank drew down completely the EUR 100 million
Global Loan facility concluded with European Investment Bank
(EIB), Luxembourg on 7 October 2010. MFB used most of the funds
for partially financing its loan programmes supporting municipal
infrastructure development projects and investment projects of
small- and medium-sized enterprises.
On 20 October 2011, MFB signed another EUR 100 million
Global Loan agreement with European Investment Bank (EIB),
Luxembourg. MFB may use the facility to partially refinance
small and medium sized projects and small and medium sized
enterprises. The Bank did not make any draw down from the facility
in 2011.
MFB signed a EUR 125 million framework loan agreement with
the Council of Europe Development Bank (CEB), Paris on 6 May
2011. The Bank may use the facility to partially refinance its loan
programmes supporting the development of small and medium
sized enterprises, the development of municipal infrastructure
and the refurbishment of residential buildings to achieve energy
savings. MFB drew down EUR 80 million from the facility in 2011.
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42 MFB ANNUAL REPORT 2011