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LONDON - J.P. Morgan SE has announced its role as the Stabilisation Coordinator for Hungarian Development Bank PLC’s upcoming bond issue, indicating potential market stabilization measures. The bank may engage in transactions to support the market price of the securities post-launch, starting today, with the stabilization period expected to last until June 21, 2025.
The securities in question are EUR-denominated, 5-year senior unsecured bonds, to be listed on the London Stock Exchange (LON:LSEG)’s Main Market. While the offer price is yet to be confirmed, the bonds will have a benchmark size and will be available in denominations of EUR 100,000.
J.P. Morgan SE, alongside other stabilization managers including Erste Group Bank AG (OTC:EBKDY), BNP Paribas SA (ETR:BNPP), Morgan Stanley (NYSE:MS), ING Bank N.V., and Raiffeisen Bank International AG, may over-allot securities up to 5% of the aggregate nominal amount. This over-allotment is a common practice designed to manage price volatility post-issuance.
The stabilization actions, which may include over-allotting securities or buying them to prop up the price, are not guaranteed to take place and may end at any time. They are governed by Commission Delegated Regulation EU/xxx/2016 under the Market Abuse Regulation (EU/596/2016).
This announcement has been made strictly for informational purposes and is not an invitation or offer to underwrite, subscribe for, or otherwise acquire or dispose of any securities. The offer is aimed at professional investors in the United Kingdom (TADAWUL:4280) and qualified investors within the European Economic Area, adhering to the Financial Services and Markets Act 2000 and the Prospectus Directive, respectively.
The securities have not been and will not be registered under the United States Securities Act of 1933, hence, they may not be offered or sold in the United States absent registration or an exemption from registration. There will be no public offering of the securities in the United States.
This financial move comes as part of Hungarian Development Bank’s broader strategy to secure funding and ensure liquidity in the market for its debt instruments. The stabilization process is a common step taken by issuers and their financial partners to mitigate potential market fluctuations following a new securities issue. This information is based on a press release statement.
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