Hungary issues JPY 39.6 billion of samurai bonds

AKK sold JPY 1.3bn of a ten-year green bond at a spread of 1.48pc over the JPY TONA mid-swap rate.

It also sold JPY 38.3bn of a conventional three-year bond at a spread of 1.1pc over mid-swaps.

The lead organisers for the issues were Mitsubishi UFJ Morgan Stanley Securities, Mizuho Securities, Nomura Securities and SMBC Nikko Securities.

The proceeds from the green series will be used to finance and refinance certain green expenditures of the central budget, and the proceeds from the other series will be used for general financing purposes of the central budget.

The capital and interest payments from the Japanese Yen bonds will be swapped into euros by AKK in accordance with debt management rules.

Moody’s assigned the three-year and ten-year yen-denominated bonds issued by Hungary a “Baa2” rating, with stable outlook, the same as the rating it assigned to Hungary’s long-term sovereign debt, Moody’s said in London on Friday. The ratings are supported by a diversified economy with robust growth outlook, and the authorities’ commitment to gradual fiscal consolidation which should help to reduce the comparatively high government debt burden over the coming five years, Moody’s said.