Hungary has issued FX benchmark bonds, finance minister says

A Hungarian woman exchanges forints for euros at a currency exchange shop in Esztergom, Hungary November 11, 2017. REUTERS/Laszlo Balogh

BUDAPEST, June 9 (Reuters) – Hungary has successfully issued foreign currency benchmark bonds in international markets, Finance Minister Mihaly Varga said on his official Facebook page on Thursday.

Varga said he would soon announce details of the issuance. According to IFR, Hungary launched the bond issuance on Wednesday.

IFR reported on Thursday that Hungary has issued dollar-denominated bonds in two tranches – $1.75 billion worth of 7-year bonds and $1.25 billion worth of 12-year bonds – and also a 9-year 750 million euro bond denominated in euros.

Hungary announced on Tuesday that it has lifted its 2022 foreign currency borrowing target by the equivalent of 2.5 billion euros, amid a stand-off with the European Union over the country’s access to EU recovery funding.

“AKK raised the gross foreign currency bond issuance target by up to EUR 2.5 billion equivalent, making the total gross FX bond issuance target up to EUR 5.1 billion equivalent in 2022, with up to EUR 4.5 billion remaining after the February Samurai bond transaction,” the debt agency said on Tuesday.

The AKK said the revision was needed to “further diversify the funding structure amid increasing costs of financing”. read more

The debt agency did not…