Hungary launched its 2nd and 3rd series Samurai bonds totalling JPY 75bn on Jun 28, announced the State Debt management Centre (AKK) in a press release. The issuance consists of a JPY 30bn 5-year bond, which carried a fixed interest of 0.62%, as well as JPY 45bn 7-year bond with a fixed coupon of 0.96%.
Both papers were priced at par, which translates to 12bps spread over the Yen Libor for the shorter notes and 14bps spread for the longer securities. Initially AKK planned to sell JPY 50bn in bonds, but strong demand forced increase of the offer.
Lead managers of the deal were Daiwa Securities SMBC and Mizuho Securities. One of the goals of the issue was to further widen the international investor base after the successful Samurai bond debut last year. AKK said that with this move "it has effectively completed its EUR 3.5bn international borrowing plan for 2005". In line with earlier announcements, proceeds will be used to refinance public debt maturing in 2005.