ÁKK raises 2022 FX issuance target by up to EUR 2.5 bln

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Hungary's Government Debt Management Agency (ÁKK) on Tuesday said it raised the gross FX bond issuance target in its 2022 Financing Plan by up to the equivalent of EUR 2.5 billion, according to a report by state news wire MTI.

The modification raises the full-year target up to the equivalent of EUR 5.1 bln, of which EUR 4.5 bln still remains after a samurai bond issue in February.

ÁKK said green panda bond issuance and private placements, depending on investor demand, could be included in the gross FX bond issuance target.

The FX bond issuance is in line with the strategic goal to further extend the maturity profile and to diversify the investor base of central government debt, ÁKK said. The FX debt ratio will remain within the 10-25% benchmark range in spite of the additional issuance, it added.

ÁKK said earlier plans for FX debt liability management of USD 2 bln in public tender and secondary market transactions to pre-finance FX bonds maturing in 2023 and 2024 and further extend the maturity profile remain unchanged. In the year to date, USD 50 million of short-term dollar bonds have been repurchased, it added.

The agency halved its target for FX loans for the year to EUR 1 bln, in line with the practice in previous years, from EUR 2 bln in the Financing Plan published in December.

ÁKK said issuance of forint bonds to institutional investors is expected to be HUF 100 bln higher than planned because of higher-than-expected issuance to date, but planned-forint bond issue volume will not change for the remainder of the year.

The agency affirmed its annual target for retail issuance and its goal to raise the volume of securities held by households to HUF 11 trillion by end-2023.

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