Press release on the GBP 500 million bond issue of the Republic of Hungary

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



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