Hungary’s state-owned development bank MFB has issued €500 million five-year bonds at 320 basis points over midswaps on Tuesday. Subscription totaled nearly double of the issue, Dow Jones reported citing one of the banks managing the issue on Tuesday.
The spread was at the tight end of the initial guidance, which had been set at between 320 and 330 basis points over midswaps.
The bond maturing on May 31, 2016 has a 5.875% annual coupon and was sold at a reoffer price of 99.314%, or at a 6.038% yield.
Settlement day of the issue is May 31, 2011.
The issue was lead managed by BNP Paribas SA, ING Groep NV and Societe Generale SA. The bonds are guaranteed by the Republic of Hungary.
Conditions compare to the latest sovereign issue placed on May 4, this year, in which the Republic of Hungary issued €1 billion bonds expiring in January 2019 at a price of 99.356% or 270bp over mid-swaps. The bond carries a 6.00% annual coupon.
MFB said earlier it intends to raise €1.1 billion-1.2 billion in external financing from international development institutions and global money and capital markets this year.
State-owned MFB is rated Baa3 by Moody’s Investors Service Inc.
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