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MFB to launch bond issue

Hungary's state-run development bank MFB Zrt will launch a €400 million ($532.6 million) bond issue to refinance expiring sources, the bank said in a statement on the website of the Budapest Stock Exchange.

Dresdner Bank Aktiengesellschaft and Calyon will organize the issue with Citigroup Global Markets Limited and Commerzbank AG, Erste Bank der oesterreichischen Sparkassen AG, DePfa Bank plc, HSH Nordbank AG and DZ Bank AG Deutsche Zentral-Genossenschaftbank as partners. The bonds are due to be issued on June 21 at a rate of 99.944% and mature in 2012. The annual yield on the bonds will be 4.875%. The documentation is expected to be signed on June 19, 2006. The bonds will be traded on the London Stock Exchange. (Gazdasági Rádió, Magyar Hirlap)