Hungary issues EUR 1 bn eurobond at 1.25 pc yield

Hungary has issued a seven-year 1 billion euro eurobond at a yield of 1.25 percent, its lowest ever, Finance Minister Mihály Varga said on Tuesday.

The bond’s low yield and the strong interest expressed in it by investors show the level of confidence investors have in Hungary, the finance ministry quoted Varga as saying.

Oversubscription for the bond issue was fourfold, Varga said.

The minister said it was telling that one week after the European Parliament’s approval of the Sargentini report, Hungary issued a eurobond with the lowest ever yield.

Varga said it was clear that the “foreign smear campaign being waged against Hungary” had been in vain and was “based on untruths”.

The high level of demand for the eurobond proved that investors are sticking with Hungary, he argued.

The country’s stable and rapid growth, rising wages, low inflation, predictable fiscal policy and declining public debt have made it cheaper over the years for Hungary to issue government bonds, the minister said.

Source: MTI