Good Finance is seriously exploring the possibility of participating in the Growth Bond Program (NCP) launched by the National Bank of Hungary (MNB), for which it has already obtained the required credit rating.
At the request of the MNB, Scope Ratings has certified the company and awarded it a B + rating. Good Finance is considering a number of options for choosing a source of funding to implement its strategy announced in the spring, and sees GNP as a win-win opportunity.
Good Finance plans to grow sales robustly in its spring strategy
By 2024, it expects to double its revenue of $ 65.5 billion last year, excluding acquisitions, by $ 142 billion, while acquisitions nearly triple $ 187 billion forint. All of this could increase earnings before tax and depreciation on financial items at even higher rates: organic growth could jump nearly fourfold to $ 7.9 billion, while acquisitions could jump four and a half times to $ 9.5 billion.
Good Finance wants to finance this growth in several ways. In addition to re-investing part of its operating profit, the company also relies on debt financing and equity raising, in which it also expects institutional investors. Acquisitions can be made in-kind, but can be funded by individual project loans, bonds, private placement, public issues, or even by returning dividends paid to Good Finance’s main owner, Wallis Asset Management (WAM).
Emphasized that the company is currently exploring
Gábor Ormosy, CEO of Good Finance, emphasized that the company is currently exploring domestic and regional acquisition options, which will be funded based on the specific features of the investment target and available funding opportunities. Considering the NCP’s announcement as a positive source, the Bank is currently considering the possibility of issuing bonds amounting to approximately HUF 3 billion under the program, if this is necessary to optimize the group’s credit structure.
Participation in the NCP is conditional on the bonds being issued being properly rated by a credit rating agency registered with the European Securities and Markets Authority (ESMA). At the request of the MNB, Scope Ratings has certified Good Finance and has given the company a B + rating. Gábor Ormosy said that obtaining a rating is an important milestone for the company and supports the implementation of the strategy, but he pointed out that Good Finance is not expected to decide on the details and uses of the bond issue until late fall.
International Financial Reporting Standards
The aim of Good Finance Nyrt., Listed in the Budapest Stock Exchange Premium category and in the BUX and BUMIX indices, is to become the leading mobility provider in the Central and Eastern European region by 2029. The company plans to double its consolidated revenue of $ 65.5 billion in 2018, based on International Financial Reporting Standards (IFRS), which it wants to achieve primarily through organic means.
In addition, the company aims to become a classical, conservative asset manager by expanding its investment portfolio focusing on automotive investments. Good Finance Group car and spare parts in 14 countries in the CEE region (Albania, Bosnia and Herzegovina, Czech Republic, Bulgaria, Croatia, Kosovo, Poland, Romania, Serbia, Slovakia, Slovenia, Macedonia, Hungary, Montenegro) wholesale, service, short- and long-term car rental.