Hungary issues USD 3 bln, EUR 750 mln FX bonds

Debt

Hungary has issued USD 3 billion and EUR 750 mln of FX bonds, Finance Minister Mihály Varga said in a video message on Facebook on Thursday, according to a report by state news wire MTI.

It was oversubscribed by double, Varga said.

"That shows that Hungary is capable of independently financing itself from the market, even in the uncertain international environment," he added.

Varga said the proceeds from the issues would be used "to preserve the country's stability, for prepayment, and to boost financial reserves".

He added that the issues do not affect the 2022 general government deficit target: "We will maintain the 4.9% [-of-GDP] deficit target and we will continue to reduce state debt".

Since 2010, the share of Hungary's state debt held by non-resident investors has been reduced from 60% to 30%, while the ratio of FX debt has fallen from 50% to under 25%, Varga said.

In a press release, the Government Debt Management Agency (ÁKK) said Hungary issued a USD 1.75 bln seven-year bond, a USD 1.25 bln 12-year bond, and a EUR 750 mln nine-year bond on June 8.

The yield on the seven-year dollar bond, with a 5.25% coupon, was 5.46%, 240 bp over the benchmark U.S. Treasury yield.

The yield on the 12-year dollar bond, with a 5.5% coupon, was 5.83%, 280 bp over the benchmark U.S. Treasury yield.

The yield on the nine-year EUR 750 mln eurobond, with a coupon of 4.25%, was 4.5%, 250 bp over EUR midswaps.

Part of the proceeds from the issue will be used to repurchase USD bonds maturing in 2023 and 2024, and the rest will go toward "general financing purposes", ÁKK said.

Number of Thefts in Capital Edges Higher in 2023 Figures

Number of Thefts in Capital Edges Higher in 2023

Moldovan Pensions to be Increased as of April 1 World

Moldovan Pensions to be Increased as of April 1

Schoenherr Names Miklós Klenanc as Head of Local M&A Practic... Appointments

Schoenherr Names Miklós Klenanc as Head of Local M&A Practic...

Hungarian Wine Marketing Agency to Host Summit Drinks

Hungarian Wine Marketing Agency to Host Summit

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.