Hungary issues samurai bonds
Hungary has issued the equivalent of EUR 500 million of bonds, denominated in JPY, on the Japanese market, Finance Minister Mihály Varga said, according to a report by state news wire MTI.
Image by Shutterstock.com
Green bonds accounted for one-third of the issue, making Hungary the first foreign sovereign issuer to enter the JPY green bond market, Varga said.
The Government Debt Management Agency (ÁKK) issued three- and five-year "conventional" JPY bonds and seven- and 10-year green bonds, he said.
Japanese investors subscribed 80pc of the issue and investors from other countries 20%, he added.
In a separate release, ÁKK said it issued JPY 62.7 billion of samurai bonds in four series, all priced at 100% of face value.
ÁKK sold JPY 22.7 bln of a three-year conventional bond with a 0.52% coupon. The spread on the bond was 51 bp over mid-swaps.
It sold JPY 20 bln of five-year conventional bonds with a 0.74% coupon. The spread was 73 bp over mid-swaps.
ÁKK sold JPY 15.5 bln of seven-year green bonds with a 1.03% coupon. The spread was 100 bp over mid-swaps.
It sold JPY 4.5 bln of 10-year green bonds with a coupon of 1.29%. The spread was 120 bp over mid-swaps.
Lead organizers for the issue were Daiwa Securities, Nomura Securities and SMBC Nikko Securities.
ÁKK said the issue completes the EUR 4 bln annual target for FX issues in its updated 2020 issue plan.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.