GBP 500 million international bond issue

In line with its financing plan for 2006 the Republic of Hungary launched and priced its third international bond on March 24, 2006.

The GBP 500 million 10-year bond, priced at 70 basis points above the UKT 4.75% 2015, pays a fix coupon of 5 % p.a. The deal was lead managed by Barclays Capital, Deutsche Bank and Lehman Brothers.

The main characteristics of the transaction:

Amount: GBP 500 Million
Tenor: 10 years
Maturity: March 30, 2016
Coupon: 5 % p.a.
Issue price: 99.04%
Spread: September 7 2015 UKT + 70 bps

The new bond attracted a number of new investors, which allowed the Republic to widen further its investor base. The new benchmark was the third sterling bond issued by the Republic. This transaction completed the 2006 international financing plan of the Republic of Hungary.

The proceeds will be used for general financing purposes.

March 24, 2006



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