Press release on the Eurobond issue of the Republic of Hungary

On September 18, 2003 the Republic of Hungary launched and priced a benchmark size €1 billion bond 7-year issue. The one and half times oversubscribed order book allowed to price the deal at the tighter end of the price guidance at 22 bps over mid swaps. This euro issue bears the lowest coupon ever for the Republic.

Main characteristics:

Amount: EUR 1 billion
Tenor: 7 years
Maturity: September 27, 2003.
Coupon: 4% p.a.
Issue price: 99,146%
Spread: mid swap + 22 bps and
July 2010 Bund + 35 bps

The deal was lead managed by Morgan Stanley International and UBS Investment Bank.

The proceeds will be used to re-finance public debt in foreign currency maturing in 2003 and in early 2004.

Budapest, September 19, 2003

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