“The notes will be a further issuance of, will be fully fungible with, rank equally with, and form a single issue and series with, the republic’s $750,000,000 7.625% notes due 2041 which were issued on March 29, 2011,” the document, filed to supplement the March issue prospectus and available on the website of SEC said.
The document did not reveal the date or the total l amount of the reoffering.
Hungary acquired a mandate from the SEC to issue up to $5 billion in bonds in February.
Of that volume, Hungary placed a combined $3.75 billion of bonds, including $3 billion of ten-year bonds and $750 million of 30-year bonds, in a global placement late March.
The ten-year bond matures on March 29, 2021, carries a coupon of 6.375% and was priced at 99.062% to yield 310 bp over US treasuries.
The 30-year bond, which could be reoffered, matures on March 29, 2041, has a 7.625% coupon and was priced at 98.084% to yield 330 bp over the reference US treasuries. The bond is the longest foreign bond issued to date by the Republic of Hungary.
The March placement attracted combined offers of HUF $13 billion, including about €3 billion for the 30-year bonds, National Economy Ministry state secretary András Kármán, who is also the chairman of Hungary’s state debt manager ÁKK, said at the time.
The money raised in the March placement — about €2.65 billion at exchange rates at the time — was more than enough to cover repayment of the two foreign currency bonds, of €1 billion apiece, maturing in June and October of this year.
ÁKK planned to issue HUF 4 billion of foreign currency bonds this year, enough to cover the €2 billion of maturing bonds as well as a €2 billion repayment due the European Commission in November. The repayment is the first on principal of a IMF-led standby loan Hungary signed for in November 2008, at the height of the global financial crisis.
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