Hungary issues EUR 1 bn of green eurobonds

Hungary has issued 1 billion euros of green bonds, the Government Debt Management Agency (ÁKK) said on Monday. The 4.25-year bonds carry fixed interest of 5 percent with a yield of 5.319 percent.

Oversubscription for the bond issue was 4.5-fold despite the volatile market environment, ÁKK said.

Finance Minister Mihály Varga said in a post on Facebook d the oversubscription showed that investor confidence in the Hungarian economy was unbroken despite the “sanctions crisis”.

Green bonds have been made more important by the energy crisis, the minister said, adding that proceeds from the bond issue are to be used to finance various renewable energy-related and environmentally-friendly investments.

Hungary has regained the confidence of investors through its successful debt management, Varga said. Whereas in 2010 the proportion of Hungary’s public debt in foreign currency was over 50 percent, today it stands at around 25 percent, he said, adding that the share of debt held by foreign investors had fallen from 65 percent to one-third during the period.