Sept. 19 (Bloomberg) -- Hungarian refiner Mol Nyrt. started taking orders for a seven-year dollar-denominated benchmark bond, said a person familiar with the offering, who asked not to be identified because terms aren’t set.
Mol, which hired Citigroup Inc. and HSBC Holdings Plc as book runners, is offering to pay “low to mid” 500 basis points over the seven-year swap, the person said.
The yield on Mol’s 2017 euro-denominated notes fell 14 basis points to 6.214 percent by 2:48 p.m. in Budapest, the lowest since June 2011. Mol shares gained 0.4 percent to 18,520 forint at the same time, rising for a second day.
European stocks and commodities advanced, snapping two days of declines, and the yen weakened after the Bank of Japan unexpectedly boosted its asset-purchase program. Gold climbed to a six-month high and Spain’s bonds rallied.
Hungarian companies including Mol will increasingly turn to the bond market as local banks struggle to obtain funding and extend credit, Zsolt Hernadi, Mol’s chairman told a conference last year.
Corporate credit conditions will tighten further this year as banks’ willingness to lend declines on the “unfavorable” economic outlook, the central bank said in its quarterly lending survey on Aug. 29, two weeks after data showed Hungary’s recession deepened further in the second quarter.
Mol is rated BB+ at Standard & Poor’s with a stable outlook and BBB- with a stable outlook at Fitch Ratings.
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