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Hungary to sell euro 3 billion of motorway bonds

Hungary plans to raise 3 billion euros (USD 3.7 billion) in a bond sale by November to pay for motorway construction, Világgazdaság said, citing Lajos Csepi, chairman of Állami Autópálya Kezelő (ÁAK) Rt. ÁAK, the company that operates state-owned highways hired Citigroup Inc., the world's biggest financial services company and Deutsche Bank AG, on May 3 to be advisers for the transaction. The government aims to keep motorway costs outside Hungary's budget and prevent bonds sold for road construction from boosting state debt, Csepi said. The highway operator, which functions as an off-budget company with half its revenue from business activities, will sell bonds at a premium to government debt. Citigroup and Deutsche Bank are seeking ways to ensure Eurostat, the European Union's statistics office, accepts this form of accounting, Csepi said.