Hungary issues € 1 billion in euro bonds
Hungary has issued € 1 billion in seven-year euro bonds on favorable terms at a low interest rate, Finance Minister Mihály Varga said, according to the MTI news feed.
Hungary issued $ 4.25 billion in 10- and 30-year dollar bonds earlier this week
The problems were also needed to help cover a delay in the European Union’s COVID stimulus funds so that the stimulus program could be launched this year, Varga said.
He confirmed that the government is still calculating with a budget deficit target of 7.5% this year and will also continue to reduce public debt.
Responding to a question, Varga said GDP growth of around 7% looks realistic this year, unless the fourth wave of the pandemic has a profound impact on economic trends.
The Public Debt Management Agency (ÁKK) said that € 1 billion in seven-year bonds bear a fixed interest of 0.125% with a yield of 0.326%. The bond coupon is the lowest Hungary has ever reached in euro bond issues.
The issue was managed by BNP Paribas, Citi, Goldman Sachs Bank Europe SE and JP Morgan.
ÁKK said he would use the funds raised for general financing, including partial pre-financing of the 2022 budget deficit.
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