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Eximbank bond 25% oversubscribed

Subscriptions for a €400 million bond, sold by Hungary's state-owned Magyar Export-Import Bank (Eximbank) on Tuesday, exceeded €500 million, CEO Roland Nátrán told local media yesterday. The bonds will expire in February 2019, carried a coupon of 2.125%, and were issued with a guarantee of the World Bank's Multilateral Investment Guarantee Agency (MIGA) to the issue.

Buyers of the bond included investors from Japan, Norway, Switzerland, the Benelux countries and Germany which would not usually buy Hungarian or 'normal' Eximbank bonds, Nátrán said, referring to the MIGA guarantee.

The bond was the second issue under Eximbank's €2 billion medium-term issuance program launched last year. The bank issued €500 million five-year bonds under the progam in December 2012.

Eximbank plans to go on with the medium-term bond program next year, Nátrán said.