Press release on the Eurobond issue of the Republic of Hungary

On September 18, 2003 the Republic of Hungary launched and priced a benchmark size €1 billion bond 7-year issue. The one and half times oversubscribed order book allowed to price the deal at the tighter end of the price guidance at 22 bps over mid swaps. This euro issue bears the lowest coupon ever for the Republic.

Main characteristics:

Amount: EUR 1 billion
Tenor: 7 years
Maturity: September 27, 2003.
Coupon: 4% p.a.
Issue price: 99,146%
Spread: mid swap + 22 bps and
July 2010 Bund + 35 bps

The deal was lead managed by Morgan Stanley International and UBS Investment Bank.

The proceeds will be used to re-finance public debt in foreign currency maturing in 2003 and in early 2004.

Budapest, September 19, 2003



    HGB and T-bill calculator
    Date: settlement date; minimum value: 01-01-2003; the date on which securities must be delivered and paid for to complete a transaction
    Type: DKJ - discount treasury bills, KTV - treasury bonds
    Convention: calculation method: ISMA (Act/Act) or EHM (Act/365 No Leap)
    Security: T-Bond or T-Bill denominated in HUF
    Yield %: yield to maturity, the percentage rate of return paid if the security is held to its maturity date
    Clean Price %: net present value of selected security, if it is not the input field, then = gross price% - acc. interest%
    Acc. Interest %: the amount of interest accumulated but not paid between the issue date or most recent payment and the settlement date
    Gross Price %: present value of selected security, if it is not the input field, then = clean price% + acc. interest%
    Face Value: optional positive integer value, Net Price, Acc. Ineterst and Gross Price will be recalculated
    Net Price: Clean Price% * face value
    Acc. Interest: Acc. Interest% * face value
    Gross Price: Gross Price% * face value