Hungary in trouble? Orbán cabinet issues samurai bonds
Hungary issued JPY 39.6bn of samurai bonds denominated in Japanese yen on September 5, Friday, by issuing two series with different maturities, the Government Debt Management Agency (AKK) said.
AKK sold JPY 1.3bn of a ten-year green bond at a spread of 1.48pc over the JPY TONA mid-swap rate. t also sold JPY 38.3bn of a conventional three-year bond at a spread of 1.1pc over mid-swaps.
The lead organisers for the issues were Mitsubishi UFJ Morgan Stanley Securities, Mizuho Securities, Nomura Securities and SMBC Nikko Securities.
The proceeds from the green series will be used to finance and refinance certain green expenditures of the central budget, and the proceeds from the other series will be used for general financing purposes of the central budget.
The capital and interest payments from the Japanese Yen bonds will be swapped into euros by AKK in accordance with debt management rules.
Moody’s assigned the three-year and ten-year yen-denominated bonds issued by Hungary a “Baa2” rating, with stable outlook, the same as the rating it assigned to Hungary’s long-term sovereign debt, Moody’s said in London on Friday. The ratings are supported by a diversified economy with robust growth outlook, and the authorities’ commitment to gradual fiscal consolidation which should help to reduce the comparatively high government debt burden over the coming five years, Moody’s said.
Watchdog fines financial service provider HUF 24m
The National Bank of Hungary (NBH) has fined Capital Hitelhaz HUF 24m over collateral assessment and customer rating problems and temporarily prohibited the company from entering into new guarantee transactions, the financial market watchdog said on Friday. The NBH set deadlines for Capital Hitelhaz to correct the shortcomings and comply with the regulations.
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Featured image: depositphotos.com
If Hungary would ditch all the Net Zero bulls…, the deficit would melt away over night. Mr. Orban is sensible on so many issues, so I’m surprised he’s still pursuing the green cr..