The increase was made at the request of investors, in a closed circle and in a large amount.

Hungary’s dollar bonds, due on May 22, 2028, were raised by 6.125 percent, with an interest rate of 6.125 percent, on Wednesday, according to the Public Debt Management Center, at the request of investors. From its advertisement. The increase was $500 million.

With this increase, the outstanding amount of the bond series will rise to $2.15 billion from the deal value date of November 22, 2023, ÁKK notes. According to their announcement, ÁKK Zrt will use the dollar bond proceeds to pre-fund next year.

See also  Globally, financial companies are fighting cybercriminals

ÁKK did not share further details about the use of the amount, but if we look at the potential large government purchases in the coming year, it is very likely that the funds that are still missing will be created to purchase Budapest Airport. It should be remembered that Economic Development Minister Marton Nagy recently spoke about the need to sell non-strategic assets to finance the purchase of Freihegy. Then it was recently revealed that the Hungarian state is selling to Erste Group the stake it bought in the bank’s Hungarian subsidiary in 2016, receiving 69 billion Hungarian forints. This amount will also go to the airport.

Incidentally, an increase similar to the current one, i.e. at the request of investors, in a closed circuit, actually occurred in the spring, when the stock of dollar bonds due in 2028 was increased by 150 million, and the stock expired on September 22, 2032 (interest rate 6.25 percent) was made. Increase it by 300 million. The amount owed by the latter – since they have not addressed it now – is still $1.8 billion.




HVG


In addition to diverse, independent and factual information, our readers who join Pártoló membership can also enjoy a number of benefits for their financial support.
Depending on your membership level, we offer, among others:

  • We send you an exclusive weekly digest of interesting things in the world;
  • You can get an insight into HVG’s work, and you can meet our authors;
  • You can participate in previews of the latest films, in various events;
  • You can purchase HVG books and publications at a discount;
  • You can read hvg360 digital news magazine.