Published: February 14, 2013
Country continues to defy the doubters.
Hungary has successfully auctioned paper worth US$3.25bn. The offering, which was four times oversubscribed, consisted of US$2bn in 10-year bonds and US$1.25bn in 5-year bonds at a combined yield of 4.96%. Bookrunners on the deal were BNP Paribas, Citi, Deutsche Bank, and Goldman Sachs.
The unorthodox economic policies of the government, led by the centre-right Fidesz party, have attracted criticism for being populist and an apparent impediment to growth. But Hungary continues to benefit from investors’ heightened risk appetite as they move towards sub-investment-grade markets in search of yield.
The deal gives a boost to the government’s ambition to self-finance this year without having to approach the IMF for help. The proceeds will be used to finance the US$6.8bn of government debt that matures in 2013.