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Hungary could tap new markets with small issues

Hungary may try to sell small amounts of foreign-currency bonds in countries such as Russia, Turkey and South Korea later this year, state debt management agency ÁKK CEO István Töröcskei told Reuters on Tuesday. Töröcskei said that ÁKK has not yet decided on the foreign currency in which the bonds would be denominated. “There will be further issuance (after a $3.25 billion sale last month), but the market (conditions) will decide about the currency,” Töröcskei told Reuters. “There is no reason to speculate about the Russians as we don't have any kind of advance deal with them; Moscow is only one market where we consider a maximum $200 million amount if we consider anything,” Töröcskei added. Hungary completed little more than half of its 2013 foreign exchange issue plan with the $3.25 billion bond sale, worth about €2.5 billion, on February 12, earlier ÁKK information shows. It sold $1.25 billion of 5-year bonds at 335 basis points over the corresponding US Treasuries, and $2 billion of 10-year papers at 345 basis points over the benchmark. This year's foreign exchange expiries total about €5.1 billion, of which ÁKK plans to repay €4 billion-4.5 billion by issuing bonds.