Hungary’s Government Debt Management Agency (ÁKK) has successfully issued a euro-denominated bond, raising a total of EUR 3 billion from international investors.
Strong demand, totaling more than EUR 9.4 billion, reduced the final spreads by 35 basis points. Based on the mid-swap rate, the spread amounted to 80 basis points for the five-year bond and 125 basis points for the ten-year bond. As a result, the yields on the two equally sized bond tranches came to approximately 3.6% and 4.2%, respectively.
The Tisza government intends to use the proceeds to pre-finance major investment projects for which EU funding is now being released under an accelerated procedure.