ÁKK said gross retail forint issuance stood at 86% of the full-year target at the end of September, although the outstanding stock of retail securities held by households, which reached HUF 8.762 trillion, were HUF 1.515 tln under the level at end-2021. Stock was reduced mainly because of early redemption of the once popular "Plus" bonds which boasted a 4.95% annualized yield if held for the full five-year maturity.
The agency said that while Plus bond stock fell by HUF 2.457 tln in Q1-Q3, stock of inflation-linked "Premium" bonds rose by HUF 1.343 tln. A "significant part" of Plus bond redemptions were reinvested in Premium bonds maturing in 2028 and 2029, improving the maturity profile of the retail debt portfolio, it added.
ÁKK noted the rollout of new retail securities linked to inflation and to T-bill yields late in September, but said the development of retail securities sales in Q4 is "difficult to estimate" in light of increased market volatility and the adverse economic environment.
The agency said forint issuance to primary market institutional investors reached 97% of the full-year target and stood at HUF 22.9 trillion at end-September. The share of non-resident holdings edged up to 20.58% from 20% at end-2021, it added.
The issue of samurai, dollar and euro bonds, as well as the drawdown of Sure credit for the European Union to mitigate the impact of the pandemic on the labor market, put the ratio of FX debt at 23.9%, still under the upper bound of the 10-25% benchmark reference range.
ÁKK noted that it has the option to issue up to CNY 2 bln of green panda bonds.
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