Press release on the Eurobond issue of the Republic of Hungary

On January 23, 2004 the Republic of Hungary launched and priced its first Eurobond in 2004 with benchmark size €1 billion, 10-year maturity and fixed coupon of 4.5% p.a. The bond was priced at 41 basis points above January 2014 German Bund.

On January 23, 2004 the Republic of Hungary launched and priced its first Eurobond in 2004 with benchmark size €1 billion, 10-year maturity and fixed coupon of 4.5% p.a. The bond was priced at 41 basis points above January 2014 German Bund.

Main characteristics:

Amount: EUR 1 billion

Tenor: 10 years

Maturity: January 29, 2014.

Coupon: 4.5% p.a.

Issue price: 99,881%

Spread: January 2014 Bund + 41 bps and mid swap + 29 bps

The deal was lead managed by BNP Paribas and Citigroup. The new benchmark was an important step to widen the Republic’s investor base since significant part of the issue went to French, Irish, Greek and Portuguese accounts.

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

Budapest, January 23, 2004

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