By Rebecca Melvin
New York, April 24 – The Republic of Hungary priced €2 billion of foreign currency bonds in two tranches due in six years and 12 years (Baa3/BBB/BBB) on Thursday, according to a syndicate source.
The €1 billion tranche of 1 1/8% notes due 2026 priced at 99.116 to yield 1.279%, or a yield spread of mid-swaps plus 145 basis points. Final pricing was tight compared to initial price talk for a spread of mid-swaps plus 160 bps area.
The €1 billion of 1 5/8% notes due 2032 priced at 97.757 to yield 1.835% or a spread over mid-swaps of 180 bps. Final pricing was tight compared with initial price talk for a spread of mid-swaps plus 195 bps area.
Investor demand for the deal pushed the order book above €3.5 billion, which was split equally between the tranches.
Citigroup (billing and delivery), ING and JPMorgan were bookrunners for the Regulation S notes.
| Issuer: | Hungary
|
| Amount: | €2 billion
|
| Description: | Notes
|
| Bookrunners: | Citigroup, ING and JPMorgan
|
| Trade date: | April 23
|
| Settlement date: | April 28
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | Regulation S
|
|
|
| 2026 notes
|
| Amount: | €1 billion
|
| Maturity: | April 28, 2026
|
| Coupon: | 1 1/8%
|
| Price: | 99.116
|
| Yield: | 1.279%
|
| Spread: | Mid-swaps plus 145 bps
|
| Price talk: | Mid-swaps plus 160 bps area
|
|
|
| 2032 notes
|
| Amount: | €1 billion
|
| Maturity: | April 28, 2032
|
| Coupon: | 1 5/8%
|
| Price: | 97.757
|
| Yield: | 1.835%
|
| Spread: | Mid-swaps plus 180 bps
|
| Price talk: | Mid-swaps plus 195 bps area
|
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