Hungary's debut forint green bond draws strong demand

Deals

The Government Debt Management Agency (ÁKK) sold HUF 30 billion of a 30-year green bond at an auction on Thursday, Earth Day, raising its original offer by HUF 10 bln on strong demand from primary dealers, according to a report by state news wire MTI.

Bids for the security, the country's first forint-denominated green bond, came to HUF 140.7 bln.

The average yield was 3.69%.

ÁKK said earlier it would issue the green bond on a quarterly basis and expected total issuance for the year to come to HUF 90 bln.

The agency also sold a combined HUF 82.5bn of conventional bonds on Thursday.

It sold HUF 45 bln of five-year bonds, raising the original offer by HUF 15 bln after bids reached HUF 107.4 bln. The average yield was 1.73%, 5 bp under the secondary market benchmark and 13 bp lower than the yield at the previous auction of the securities two weeks earlier.

ÁKK sold HUF 37.5 bln of 10-year bonds, HUF 12.5 bln more than planned. Bids came to HUF 51.1 bln. The average yield was 2.69%, level with the benchmark but 4 bp under the yield at the auction two weeks earlier.

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