Duna Aszfalt Zrt. today initiated the voluntary redemption of bonds associated with the financing of the GED Africa project held by EXIM Bank and MFB Bank. This decision is intended to reinforce the stability of the project's financing structure, safeguard the international economic credibility of both the Duna Group and Hungary, and ensure the long-term, uninterrupted delivery of the Kasomeno-Mwenda infrastructure development project.
The company has submitted the required notification to the relevant financing institutions. In accordance with the contractual terms, Duna Aszfalt Zrt. expects the process to be completed within ten working days.
The company intends to redeem the bonds in accordance with the terms of issue, under standard conditions, at face value, together with any interest accrued up to the redemption date.
When the financing structure was established, the Duna Group’s international growth strategy was focused on the parallel development of multiple foreign markets. Since then, the group’s strategic priorities have evolved, with a greater emphasis now placed on opportunities in Africa. Accordingly, financial resources have been reallocated to support this strategic direction. As a result, the financing of the Kasomeno-Mwenda Project remains secure and sustainable over the long term.
The financing structure has already generated several billion forints in revenue for EXIM Bank and MFB Bank to date. Duna Aszfalt Zrt. acknowledges the Hungarian State’s position concerning the state guarantee and, with the aim of further strengthening the project’s stability and preserving Hungary’s international reputation, has decided to initiate the voluntary redemption of the bonds
“For the Duna Group, trust is the foundation of every business relationship. When uncertainty arises regarding a financing structure that could negatively affect our company and our relations with partner countries, it is our responsibility to act. That is why we have initiated the redemption of the bonds,” said Attila Kerékgyártó, Chairman of the Board of Directors of Duna Aszfalt Zrt.
The project remains financially secure; however, it is just as important for us to preserve the professional credibility and good reputation that Duna Aszfalt Zrt. has built up over more than thirty-five years. As a group of companies operating in several countries and employing more than 2,000 people in Hungary alone, we have a responsibility towards our employees, our partners and the countries involved in the project.
“We wish to send a clear message: the Kasomeno-Mwenda Project is on a stable financial footing, and the Duna Group will continue to fulfil all its commitments in full,” added Attila Kerékgyártó.
The state guarantee would only have imposed a cost on taxpayers in the event that Duna Aszfalt Zrt. was unable to fulfil its obligations. By voluntarily redeeming the bonds, the company removes this risk entirely. However, the state will no longer benefit from future revenues generated by the financing structure, including guarantee fees and related interest income.
The Duna Group believes that the successful international presence of a Hungarian-owned company also strengthens Hungary's position in the global economy. The Kasomeno-Mwenda Project is the first African infrastructure development to be implemented through cooperation between the public and private sectors, supported by Hungarian professional investment and expertise. The aim of the project is to serve as a reference project for future infrastructure investments across Africa.
As part of the project, an intensive knowledge transfer is currently taking place between Hungarian and African experts. The Duna Group aims to build on the experience gained during this project to participate in further African infrastructure development projects in the future.
The company aims to complete the bond redemption process as quickly as possible, in accordance with the terms of the bond issue.
The Duna Group is one of the leading construction groups in Central and Eastern Europe, with Duna Aszfalt Zrt. as its flagship company. The company has been carrying out complex transport and infrastructure development projects for more than three decades and employs over 3,500 people in Hungary and through its international subsidiaries. In addition to Hungary, the group has a presence in several European countries and is playing an increasingly significant role in the implementation of international project development and concession projects. Its activities range from project development and financing, through design, construction and the application of digital engineering solutions, to long-term operation and maintenance.
GED Africa Ltd. is the Duna Group’s African project company, responsible for the implementation and long-term operation of the Kasomeno-Mwenda Infrastructure Project. The project is being carried out in the Democratic Republic of the Congo and the Republic of Zambia under a 25-year PPP concession arrangement. The investment involves the construction and operation of nearly 184 kilometres of public roads, a 362-metre-long border bridge, two state-of-the-art One Stop Border Post facilities, and the associated digital toll and operational infrastructure. The project aims to develop a trade corridor of global economic significance, which will strengthen regional and international trade, improve transport links and contribute to the region’s long-term economic development.