Alternative sources of funding before the 2026 elections: Orbán cabinet secured €600mn from Chinese institutional investors
Hungary issued RMB 5bn of panda bonds, targeted at Chinese institutional investors, on Tuesday, the National Economy Ministry said.
Chinese loan
Proceeds from the issue, with a value of around EUR 595m, will contribute to building up liquid reserves, especially important amid global economic difficulties and large-scale uncertainty, the ministry said.
The Government Debt Management Agency (ÁKK) sold RMB 4bn of a three-year bond and RMB 1bn of a five-year bond, on strong demand and priced favourably, the ministry added.
The issue further cements Hungary’s presence on one of the world’s largest capital markets and strengthens the country’s cooperation with China, the ministry said. Because of an expanded circle of investors, the financing of Hungary’s state debt stands on a number of legs, boosting stability, it added.
State debt in EUR, USD
The ministry noted that 97pc of Hungary’s state debt was still denominated in euros and dollars, but said the latest RMB issue reinforced ÁKK’s diversification efforts.
The proceeds from the issue will increase the flexibility of debt management and boost liquid reserves, paving the way for further repurchases during the remainder of the year, depending on market developments, the ministry said.
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