The European Union's most heavily indebted member nation had filed with the US regulatory authorities for the issuance of USD5 billion worth of bonds. This is the country's way of following other emerging nations in tapping international funding for finances.
The bond is due on 2023 and its yield is 14 basis points to 6.17% by 11:30 am in Budapest. This is an increase from its one month low of 6.02% a couple of days ago. This is achieved through a 'shelf' registration that would allow Hungary to sell securities in more than just one batch. This was confirmed through a document published by the Securities and Exchange Commission.
Last week alone, many other developing nations such as Romania, Russia ansd South Africa had sold international bonds last week. This is in anticipation of the decision of the Federal Reseve to apply quantitative easing of its monetary stimulus. In its first sale last February, Hungary was able to raise USD3.25 billion. Now, they may sell a larger a volume to prefinance notes which would mature by 2014. This was confirmed by Hungary's Economy Ministry through an online briefing conducted last Aug.22.
Join the Conversation