Hungary Issues EUR 1 bln Green Eurobond

Debt

Shutterstock.com

Hungary issued a EUR 1 billion green eurobond on Monday, the Government Debt Management Agency (ÁKK) said, according to a report by state news wire MTI.

The yield on the 4.25-year bond, with a 5% coupon, was 5.32%, 250 bp over EUR mid-swaps.

The bonds were oversubscribed by a factor of 4.5 "in spite of the volatile market environment", ÁKK said. Proceeds from the bond will go toward financing and re-financing green central budget expenditures, it added.

The lead managers for the issue were BNP Paribas, Citi, Erste Group, JP Morgan, and OTP Bank.

"In spite of the crisis caused by the sanctions, Hungary's financing is stable," Finance Minister Mihály Varga said in a post on Facebook. He noted that FX debt now accounts for around 25% of Hungary's state debt, down from over 50% in 2010, while the ratio of debt held by non-residents has dropped to one-third from 65%.

Varga said the proceeds from the bond would be used for investments related to renewable energy, green public transport, and environmentally-friendly developments.

Hungary last issued a green eurobond - a 15-year, EUR 1.5 bln security - in June 2020. 

ÁKK's issues of FX bonds this year included Samurai bonds worth the equivalent of EUR 575 mln in February and issues of USD 3 bln and EUR 750 mln of FX bonds in June.

ADVERTISEMENT

Greece, Bulgaria, Romania, Hungary Agree to Nat Gas Vertical... Energy Trade

Greece, Bulgaria, Romania, Hungary Agree to Nat Gas Vertical...

MPs Approve Tax Changes Parliament

MPs Approve Tax Changes

Home Loan Rates Climb Over 10% Residential

Home Loan Rates Climb Over 10%

Countries Exchange Experiences for Better Production of Catt... Conferences

Countries Exchange Experiences for Better Production of Catt...

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.