Press release on the Eurobond issue of the Republic of Hungary

In line with its financing plan for 2008 the Republic of Hungary launched and priced its second international bond on June 5, 2008. The €1.5 billion 10-year bond, priced at midswap plus 98 basis points, pays a fix coupon of 5,75% p.a. The deal was lead managed by BNP Paribas, Citigroup and ING.

The main characteristics of the transaction:

Amount: EUR 1.5 Billion
Maturity: June 11, 2018
Coupon: 5,75% p.a.
Issue price: 99,54%
Spread: 10-year euro midswap + 98 bps

The transaction attracted significant demand (more than 140 investors) even from countries and regions (e.g. Spain, Italy and Asia), where investors have not been considered as traditional buyers of Republic of Hungary bonds. The largely oversubscribed book enabled the leads to price the bond through the original price guidance.

The proceeds will be used for general financing purposes.

Budapest, June 05, 2008

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