Proceeds from the issue, with a value of around EUR 595 mln, will contribute to building up liquid reserves, especially important amid global economic difficulties and large-scale uncertainty, the ministry said.
The Government Debt Management Agency (ÁKK) sold RMB 4 bln of a three-year bond and RMB 1 bln of a five-year bond, on strong demand and priced favorably, the ministry added.
The issue further cements Hungary’s presence on one of the world’s largest capital markets and strengthens the country’s cooperation with China, the ministry said.
Because of an expanded circle of investors, the financing of Hungary’s state debt stands on a number of legs, boosting stability, it added.
The ministry noted that some 97% of Hungary’s state debt was still denominated in euros and dollars, but said the latest RMB issue reinforced AKK’s diversification efforts.
The proceeds from the issue will increase the flexibility of debt management and boost liquid reserves, paving the way for further repurchases during the remainder of the year, depending on market developments, the ministry said.
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