Hungary issues EUR 1.5 bln green eurobond
Hungaryʼs government issued a 15-year EUR 1.5 billion green eurobond on Tuesday, the Government Debt Management Agency (ÁKK) said, according to a report by state news wire MTI.
Image by Shutterstock.com
The green bond, which carries a 1.75% annual coupon, was issued at a price of 97.332%, putting its yield at 1.957%. The spread was 214.6 bp over the comparable German Bund and 190 bp over mid-swaps.
The bond had been priced at 240 bp over mid-swaps.
Oversubscription was more than five-fold, ÁKK said.
Proceeds from the issue will be used to finance various environmentally-friendly investments funded by the central budget.
The issue brings ÁKKʼs FX bond issuance so far this year to EUR 3.5 bln, close to the EUR 4 bln issue plan for the full year. Additionally, ÁKK plans to draw on EUR 500 million in credit from international financial institutions, according to its latest issue plan modified to accommodate bigger government spending on the management of the coronavirus crisis.
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.