Press release on the EUR 1 billion eurobond issue of the Republic of Hungary

On October 25, 2004 the Republic of Hungary launched and priced its new €1 billion transaction. The 7-year bond, priced at 27.3 basispoints above July 2011 German Bund, pays a fix coupon of 3.625% p.a.
The deal was lead managed by Dresdner Kleinwort Wasserstein and JP Morgan.

Main characteristics:

Amount: EUR 1 billion
Tenor: 7 years
Maturity: October 28, 2011
Coupon: 3.625% p.a.
Issue price: 99.454%
Spread: July 2011 Bund + 27.3 bps (equalling to € mid swap + 12 bps)

The new transaction, which is the second euro denominated bond issue for the Republic in 2004, is an important step to widen investor base in Europe, and its terms and conditions reflect Hungary’s new status as a member of the European Union.

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

Budapest, October 25, 2004



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