Hungarian government set to issue Chinese bonds
Hungary’s Government Debt Management Agency (ÁKK) on Friday said it mandated Bank of China and three other financial institutions to organise the issue of panda bonds targeted at Chinese institutional investors.
The panda bond issue, along with the issue of a bigger-than-planned USD 4 billion of dollar bonds in June, serves to enhance the flexibility and security of financing, ÁKK said.
The panda bond issue will temporarily increase reserves, and a bigger than planned FX bond buyback could take place by year-end, if market conditions are favourable, ÁKK said. Consequently, full-year net FX bond issuance would not change relative to the financing plan approved in June, it added.
Issuance and pricing will be determined based on market conditions, ÁKK said.
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