Hungary Issues EUR 1 bln Green Eurobond


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.


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