AKK plans net forint repayments of HUF 182 bln in Q2

Gross issues, including bonds sold at exchange auctions, are planned to total HUF 1,261 billion in April-June as compared to the HUF 1,349 billion total planned for March-May. Gross repayments are projected at HUF 1,443 billion, including bonds bought back at the reverse and bond exchange auctions. 


The bulk or HUF 161 billion of the Q2 net repayments will come from twelve-month discount T-bills, with two large expiries in the period. AKK plans just HUF 12 billion of net bond repayments, including the early buyback of HUF 40 billion of bonds at four reverse auctions and HUF 30 billion of bonds to be sold at three bond swap auctions in the period. It plans to repay net HUF 10 billion of three-month discount T-bills in Q2.


The average offer of HUF 40 billion at the six fixed-rate bond auctions due in the period matches the most recent offer. Econews assumed that the HUF 325 billion of bond sales planned in the period include HUF 15 billion at the three floating-rate bond auctions planned on April 12, May 10 and June 7, in addition to the HUF 30 billion bonds sold at the exchange auctions. The plan likely includes the bonds to be sold at the non-competitive tenders following bond auctions too.


AKK plans to auction its longest, 15-year fixed-rate bond once during the quarter, on April 19. 


There will be one big bond expiry on June 12 when HUF 266 billion of 2012/B bonds plus 7.25% in interest will be due.


Per-auction offers of twelve-month discount T-bills will remain at HUF 45 billion, the amount recently reduced from HUF 50 billion. The combined offer of twelve-month discount T-bill at six biweekly auctions comes to HUF 270 billion. There will be two big expiries of HUF 430 billion, one, of HUF 240 billion, on May 2, and the other, of HUF 190 billion, on June 27. 


The average per auction offer of three-month discount T-bills comes to just below the HUF 50 billion on offer since the middle of January, the issue plan shows.


AKK plans to offer a combined HUF 645 billion of three-month discount T-bills at the 13 weekly auctions in Q2, against expiries of HUF 655 billion.


The tentative target for twelve-month interest-bearing T-bill sales, designed for retail investors, is HUF 21.1 billion, matching, as usual, the expiring volume.


AKK projected the 2012 central government net financing requirement would reach HUF 674 billion, and put the year's net issues -- 95% of it in forints -- at HUF 643 billion in the annual issue plan revealed in December. 


The central government's full-year cash flow-based deficit target is HUF 576.2 billion of which HUF 286.6 billion or almost 50% was delivered in the first two months. Adjusted for one-off items in 2011 and 2012, the two-month deficit was HUF 294.3 billion or 32.1% of the adjusted target, the National Economy Ministry said.