Hungary’s Government Debt Management Agency (ÁKK) on Tuesday said it plans to issue a low-interest, long-term eurobond to refinance high-interest dollar bonds that are maturing soon.
As they introduce themself, the mission of ÁKK is to finance the government debt and the central government deficit at the lowest costs in the long run taking account of risks, at a high professional level and by using sophisticated methods.
Switching the dollar bond with the eurobond will result in “significant interest savings”, ÁKK said.
ÁKK mandated BNP Paribas, Citi, Deutsche Bank and ING for the transaction.
Investors will have seven days to sell their USD bonds, after which ÁKK will offer the eurobond, “depending on market circumstaces”, ÁKK said.
The transaction will not alter the size or the proportion of Hungary FX state debt, it added.
ÁKK did not specify which dollar bonds it intends to repurchase.