A new series of inflation-linked retail government bonds on offer from January 25 will carry a 3 percentage-point premium over the official CPI, the website of Hungary's Government Debt Management Agency (ÁKK) shows.
The new series, of which HUF 50 billion is offered for subscription until the end of next January, will pay a 8% annual interest for its first interest period ending on April 25, 2013.
Premium on the new 2018/I series is down from the outgoing 2017/I bonds carrying a 4-percentage-point premium over inflation, but is up from has the previous series, launched early December, which pays only a 2.5 percentage point premium (still 8.5% on its first interest period).
ÁKK announced on Wednesday that it closed the offering of the 2017/I bonds, launched last March. It recently raised the offer of the bonds from HUF 40 billion to HUF 55 billion as the bond, which pays 9.5% annually on the first interest period ending in March, has attracted high demand, with sales reaching HUF 37.3 billion by the end of December.
The inflation-linked Premium bonds are available only to domestic private individuals. The individual series are on offer for one year, but ÁKK may close subscription earlier.
The total outstanding stock of the nine bonds reached HUF 256 billion at the end of December, of which HUF 32,4 billion, sold from the first series launched in January 2010, will expire on Friday, January 25.