ÁKK at 64% of annual issue plan

Debt

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The Government Debt Management Agency (ÁKK) has said it reached 64% of its annual issue plan by the end of the first half in a release on its website.

ÁKK issued HUF 5.813 trillion of securities, not including switch issues, compared to a HUF 9.013 tln full-year target.

First-half issues included HUF 1.443 tln of forint bonds and HUF 1.798 tln of forex bonds to institutional investors.

Outstanding debt held by institutional investors reached HUF 22.181 tln at the end of June and included HUF 117 billion of municipal bonds. Non-resident holdings accounted for 20.9% of the total, edging up from 20% at the end of 2021.

The issue of samurai (a Japanese yen-denominated bond), dollar, and euro bonds, as well as the drawdown of Sure credit from the European Union to mitigate the impact of the pandemic on the labor market, puts the ratio of FX debt at 21.4%, still under the upper limit of ÁKK's 10-25% benchmark reference range.

The agency said it does not plan to issue additional dollar or euro bonds for the rest of the year, but added that smaller transactions, such as the issuance of a green panda bond (a Chinese renminbi-denominated bond), private placements and projects loans "are still to be expected."

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