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.
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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.
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