Press release on the EUR 1 billion eurobond issue of the Republic of Hungary

On October 25, 2004 the Republic of Hungary launched and priced its new €1 billion transaction. The 7-year bond, priced at 27.3 basispoints above July 2011 German Bund, pays a fix coupon of 3.625% p.a.
The deal was lead managed by Dresdner Kleinwort Wasserstein and JP Morgan.

Main characteristics:

Amount: EUR 1 billion
Tenor: 7 years
Maturity: October 28, 2011
Coupon: 3.625% p.a.
Issue price: 99.454%
Spread: July 2011 Bund + 27.3 bps (equalling to € mid swap + 12 bps)

The new transaction, which is the second euro denominated bond issue for the Republic in 2004, is an important step to widen investor base in Europe, and its terms and conditions reflect Hungary’s new status as a member of the European Union.

The proceeds will be used to re-finance public debt maturing in 2004.

Budapest, October 25, 2004

Contents

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    HGB and T-bill calculator
    Date: settlement date; minimum value: 01-01-2003; the date on which securities must be delivered and paid for to complete a transaction
    Type: DKJ - discount treasury bills, KTV - treasury bonds
    Convention: calculation method: ISMA (Act/Act) or EHM (Act/365 No Leap)
    Security: T-Bond or T-Bill denominated in HUF
    Yield %: yield to maturity, the percentage rate of return paid if the security is held to its maturity date
    Clean Price %: net present value of selected security, if it is not the input field, then = gross price% - acc. interest%
    Acc. Interest %: the amount of interest accumulated but not paid between the issue date or most recent payment and the settlement date
    Gross Price %: present value of selected security, if it is not the input field, then = clean price% + acc. interest%
    Face Value: optional positive integer value, Net Price, Acc. Ineterst and Gross Price will be recalculated
    Net Price: Clean Price% * face value
    Acc. Interest: Acc. Interest% * face value
    Gross Price: Gross Price% * face value