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Hungary prices bonds; issue could total $3.5 bln

Hungary is expected to place $3.5 billion or more of dollar-denominated bonds, including $3 billion in ten-year bonds and $500 million - $750 million of 30-year USD-denominated bond in an ongoing global transaction, Dow Jones and Reuters reported on Thursday.

The 10-year bond is priced at 310bp over the comparable US treasuries and the 30-year bond is priced at 330bp over the respective US papers, the news agencies said, citing market sources.

The spreads are smaller than indicated by the earlier guidance which were about 325bp in the case of the ten-year bonds and around 345bp for the 30-year bonds.

Hungary's Government Debt Management Agency (AKK) announced earlier on Thursday it had issued a mandate for BNP Paribas, Citi and Deutsche Bank to organise a USD-denominated bond for Hungary.

AKK did not name either the size or the maturity of the bond(s), only said that issue and pricing will be timed depending on market conditions.

The 30-year bond will be the longest foreign bond issued in Hungary's recent history.