Economy of Eastern Europe: Hungary issues foreign exchange bonds

According to Thursday’s statement from Finance and economy Minister Mihaly Varga. Hungary has issued benchmark bonds worth a total of $4.25 billion in dollars.

According to Varga, bids for the papers were over $12 billion. On Wednesday, amid a surge in the world stock market. Hungary released dollar benchmark bonds with terms of 5, 10, and 30 years.

After the present issue, the proportion of foreign exchange debt in Hungary’s total state debt would remain below 30%. In a filing with the London Stock Exchange on Wednesday, Hungary stated that it was presenting a buyback offer for some bonds worth more than $2.7 billion that were denominated in dollars.

The AKK reported in a statement that it had sold $1.5 billion in bonds with a maturity of five years at a yield of 6.273%, $1.5 billion in notes with a maturity of ten years at a yield of 6.509%, and $1.25 billion in bonds with a maturity of thirty years at a yield of 7.098%. Positive global sentiment, according to the report, helped the bonds to be priced better than initially predicted.

The AKK stated that it would repurchase dollar-denominated notes due in 2023 and 2024 and use the proceeds for general financing. AKK Chief Executive Zoltan Kurali stated last month that the organization will choose a dollar bond issue since it was less expensive. The AKK also announced that it would resume holding 3-year forint bond auctions this year.

Economy of Albania and Slovenia

Two auctions for 5 billion leks ($46.3 million/€43.6 million) in government paper will be held by Albania’s finance ministry. This is according to data from the central bank. The finance ministry will issue two-year Treasury notes with a par value of 4 billion leks. They would mature on January 12, 2025. The paper has a 6% suggested coupon rate.

The finance ministry will also put up for sale six-month government securities worth 1 billion leks with a maturity of July 13, 2023. A portion of the offer—about 300 million leks—is set aside for the central bank.

In addition to a 250 million euro tap of its outstanding 3.125% notes due in August 2045, Slovenia raised 1.25 billion euro ($1.33 billion) from institutional investors through the issuance of a ten-year sustainable bond, according to the finance ministry.

The reopening of the August 2045 bonds priced with a reoffer yield of 3.922%, the finance ministry said in a statement on Wednesday. The new sustainability offering priced with a coupon of 3.625% and a 3.654% reoffer yield.

The Ministry of Finance said that demand for the sustainable bond transaction was over 10 billion euros. According to the finance ministry. The money raised will be used to support public investments that advance the nation’s environmental and social objectives. As well as to advance and expand the local and global green, social, and sustainability bond markets.

The offering was jointly led by BNP Paribas, Citi, Deutsche Bank, Erste Group, Nova KBM, and UniCredit. According to a preliminary estimate.