In line with its financing plan for 2005 the Republic of Hungary launched and priced its third international bond on April 29, 2005. The GBP 500 million 12-year bond, priced at 53 basis points above the UKT 4.75% 2015, pays a fix coupon of 5 % p.a. The deal was lead managed by Citigroup and The Royal Bank of Scotland.
The main characteristics of the transaction:
Amount: GBP 500 Million
Tenor: 12 years
Maturity: May 9, 2017
Coupon: 5 % p.a.
Issue price: 98.873%
Spread: September 7 2015 UKT + 53 bps (equalling to GBP midswap + 20.5 bps)
The significant oversubscription enabled the leads to price the bond at the tight end of the indicated spread range of 53-56 bps over Gilts. The new benchmark was priced at the same spread as the 10-year sterling bond of the Republic issued in 2004, but with a lower coupon.
The proceeds will be used to re-finance public debt maturing in 2005.
April 29, 2005