JPY 75 billion Samurai Bond issuance

On June 28, 2005 the Republic of Hungary launched its 2nd and 3rd series Samurai Bonds totalling JPY 75 billion. The JPY 30 billion 5-year paper pays a fixed coupon of 0.62 % p.a., while the coupon on the JPY 45 billion 7-year bond is fixed at 0.96 % p.a. The bonds were priced at 12 and 14 basis points above Yen Libor respectively.

Samurai # 2
Amount: JPY 30 billion
Tenor: 5 years
Maturity: July 12, 2010
Coupon: 0.62 % p.a.
Issue price: 100 %
Spread: Yen Libor + 12 bps

Samurai # 3
Amount: JPY 45 billion
Tenor: 7 years
Maturity: July 12, 2012
Coupon: 0.96 % p.a.
Issue price: 100 %
Spread: Yen Libor + 14 bps

The deal was lead managed by Daiwa Securities SMBC Co Ltd and Mizuho Securities Co Ltd. The objective of the transaction was to widen further the international investor base following the successful debut Samurai issue last year. As a result of the strong investor demand the size was increased from the original JPY 50 billion, a move by which the Government Debt Management Agency Ltd (ÁKK) has effectively completed its EUR 3.5 billion international borrowing plan for 2005 (This constitutes approximately 13 % of the gross securities issuance by the Republic.) The proceeds will be used to refinance public debt maturing in 2005.

June 28, 2005



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