Are you sure?

Hungary issues EUR 1.5 bln green eurobond

Hungaryʼs government issued a 15-year EUR 1.5 billion green eurobond on Tuesday, the Government Debt Management Agency (ÁKK) said, according to a report by state news wire MTI.

Image by

The green bond, which carries a 1.75% annual coupon, was issued at a price of 97.332%, putting its yield at 1.957%. The spread was 214.6 bp over the comparable German Bund and 190 bp over mid-swaps.

The bond had been priced at 240 bp over mid-swaps.

Oversubscription was more than five-fold, ÁKK said.

Proceeds from the issue will be used to finance various environmentally-friendly investments funded by the central budget.

The issue brings ÁKKʼs FX bond issuance so far this year to EUR 3.5 bln, close to the EUR 4 bln issue plan for the full year. Additionally, ÁKK plans to draw on EUR 500 million in credit from international financial institutions, according to its latest issue plan modified to accommodate bigger government spending on the management of the coronavirus crisis.