Hungary has issued three USD-denominated bonds. The Government Debt Management Agency (ÁKK) reported strong demand exceeding USD 14 billion for the foreign currency bonds with maturities of 5, 10, and 30 years. As a result, bonds totaling USD 4 billion were issued, with USD 1.5 billion allocated to each maturity.
The highest demand was for the five-year bond, which offered a yield of 5.375%. The interest rates for the two longer maturities were 6.0% and 6.75%, respectively.
Hungary is responding to the tense geopolitical situation with these issuances and is building reserves to prepare for potential disruptions in global financial markets. According to the Ministry of Economic Development, the current bond issuance also served to extend the average maturities of the country’s upcoming debt obligations.