ADVERTISEMENT

Hungary issues EUR 1 bln of euro bonds

Banking

Shutterstock.com

Hungary issued EUR 1 bln of seven-year euro bonds under favorable conditions, at a low interest rate, Finance Minister Mihály Varga said, according to state news wire MTI.

Hungary issued USD 4.25 bln of dollar bonds with 10- and 30-year maturities earlier this week

The issues were also necessary to help cover a delay in European Union COVID recovery funds so that the recovery program can be started this year, Varga said. 

He confirmed that the government still calculates with a 7.5% budget deficit target this year and will also continue reducing the government debt. 

Answering a question, Varga said a GDP growth of around 7% seems realistic this year unless the fourth wave of the pandemic has a profound impact on economic trends.

The Government Debt Management Agency (ÁKK) said the EUR 1 bln of seven-year bonds carry fixed interest of 0.125% with a yield of 0.326%. The coupon of the bonds is the lowest ever achieved by Hungary in euro bond issues.

The issue was lead managed by BNP Paribas, Citi, Goldman Sachs Bank Europe SE, and J.P. Morgan.

ÁKK said it will use the funds raised on general financing, including partial pre-financing of the 2022 budget deficit.

ADVERTISEMENT

IMF raises Hungary 2021 GDP growth forecast to 7.6% Analysis

IMF raises Hungary 2021 GDP growth forecast to 7.6%

Parliament approves amendment to Competition Act Parliament

Parliament approves amendment to Competition Act

New CEO announced at Codic Hungary Appointments

New CEO announced at Codic Hungary

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.