ÁKK cuts offer for green bond on weak demand

Debt

The Government Debt Management Agency (ÁKK) sold HUF 10 billion of a 30-year green bond at auction on Thursday, halving its original offer because of weak demand, according to a report by state news wire MTI.

Primary dealers' bids came to just HUF 12.2 bln at the third quarterly auction of the securities.

The average yield was 3.58%, 14 bp over the yield at the previous auction of the bonds on July 8. The benchmark yield on Hungary's longest "conventional" forint bond, a 20-year security, was 3.76% on Thursday.

Hungary launched the green bond at an auction on April 22, Earth Day, and is selling the securities each quarter. AKK earlier said it expected full-year issuance to reach HUF 90bn.

ÁKK sold HUF 30 bln of the green bond at the auction in July and HUF 30 bln at the one in April.

The agency also sold HUF 25 bln of discount twelve-month T-bills at auction on Thursday, raising its original offer by HUF 5 bln after bids came to HUF 77.9 bln.

The average yield was 1.53%, 1 bp over the secondary market benchmark and level with the yield at the previous auction of the bills two weeks earlier.

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