Press release on the JPY 50 billion bond issue of the Republic of Hungary

On June 9, 2004 the Republic of Hungary launched and priced its first Samurai Bond with benchmark size JPY 50 billion, 5-year maturity and fixed coupon of 1,09% p.a. The bond was priced at 16 basispoints above Yen Libor.

Main characteristics:

Amount: JPY 50 billion
Tenor: 5 years
Maturity: June 18, 2009.
Coupon: 1,09 % p.a.
Issue price: 100 %
Spread: Yen Libor + 16 bps

The deal was lead managed by Daiwa Securities SMBC and Nomura Securities.
Although this is the Republic’s debut Samurai, it follows 28 Samurai and 2 Euroyen issues by the National Bank of Hungary in a 10-year period 1987-1997. The issue is a further step to widen the investor base for the bonds of the Republic of Hungary.

The proceeds will be used to refinance public debt maturing in 2004.

Budapest, June 9, 2004



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