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Hungarian state takes on EUR 3 billion in new loans
Hungary raised EUR 3 billion in new financing on 7 January after carrying out a successful eurobond issuance, according to a statement by the Government Debt Management Agency (ÁKK). Investor demand was strong, with the bonds heavily oversubscribed and selling out shortly after issuance.
Two tranches with different maturities
The transaction consisted of two separate bond tranches:
- EUR 2 billion in bonds maturing in 2033, carrying an annual interest rate of 4.25%
- EUR 1 billion in green bonds maturing in 2038, with an annual interest rate of 4.875%
According to ÁKK, proceeds from the EUR 2 billion conventional bond will be used for general financing purposes, while funds raised through the green bond will be allocated to financing and refinancing environmentally related expenditures in the central budget.
Strong investor demand and favourable pricing
Investor interest was particularly high, with total bids exceeding EUR 10 billion, representing roughly three times oversubscription. Thanks to the strong demand, pricing was set 30 and 25 basis points lower, respectively, than initially indicated.
The 2033 bond was issued with a 160-basis-point yield premium, while the 2038 green bond carried a 195-basis-point premium.
International banks led the transaction
The eurobond issuance was jointly managed by BNP Paribas, Erste Group Bank, ING Bank, JP Morgan, and Raiffeisen Bank International.
Part of Hungary’s 2026 financing strategy
ÁKK previously announced that Hungary plans to raise approximately HUF 16,000 billion in new financing in 2026. More than HUF 10,000 billion of this amount will be used to refinance maturing debt, while HUF 5,455 billion will cover the planned budget deficit.
Following the latest issuance, the share of foreign-currency debt in Hungary’s total public debt is expected to remain close to the government’s medium-term target of around 30% by the end of 2026, staying within the designated tolerance range.
Credit ratings remain investment grade
According to the Ministry for National Economy, the strong investor interest and lower-than-expected yields indicate continued international confidence in Hungary’s economy, despite ongoing geopolitical tensions and economic difficulties in Germany.
Hungary entered 2026 with all three major credit rating agencies (Fitch Ratings, Standard & Poor’s, and Moody’s) continuing to assign the country an investment-grade rating. The ministry also pointed to last year’s successful bond issuances in euros, US dollars and Chinese renminbi as further confirmation of sustained investor confidence.