Chicago, Jan. 5 – Hungary priced $4.25 billion of bonds in three parts (Baa2/BBB/BBB) on Wednesday, according to a market source.
The sovereign priced tranches due May 22, 2028, Sept. 22, 2032 and Sept. 25, 2052.
The $1.5 billion of notes due 2028 priced with a 6 1/8% coupon at 99.278 to yield 6.273%.
The notes due 2028 were being talked in the Treasuries plus 260 basis points area. Talk tightened mid-pricing to 245 bps and then ultimately priced at Treasuries plus 240 bps.
The $1.5 billion of notes due 2032 priced with a 6¼% coupon at 98.171 to yield 6.509%.
The middle tranche had initial talk in the Treasuries plus 300 bps area, tightened to 285 bps and then 5 more bps to price at 280 bps.
The $1.25 billion of notes due 2052 come with a 6¾% coupon and a 95.729 discount to yield 7.098%.
The longest-dated tranche of notes showed initial talk in the 350 bps area over Treasuries with a later revision to 330 bps and then moved another 5 bps tighter to price at Treasuries plus 325 bps.
The final orderbook was $12.5 billion over the three tranches, with a slight skew to the 30-year tranche.
BNP Paribas, Citi, Deutsche Bank, Goldman Sachs Bank Europe SE and JPMorgan are bookrunners with JPMorgan handling billing and delivery.
Proceeds will be used to refinance certain outstanding debt pursuant to a concurrent tender offer and for general budgetary purposes.
The Rule 144A and Regulation S issue will be listed on the London Stock Exchange.
| Issuer: | Hungary
|
| Amount: | $4.25 billion
|
| Issue: | Bonds
|
| Bookrunners: | BNP Paribas, Citi, Deutsche Bank, Goldman Sachs Bank Europe SE and JPMorgan (billing and delivery)
|
| Trade date: | Jan. 4
|
| Settlement date: | Jan. 11
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| 2028 notes
|
| Amount: | $1.5 billion
|
| Maturity: | May 22, 2028
|
| Coupon: | 6 1/8%
|
| Price: | 99.278
|
| Yield: | 6.273%
|
| Spread: | Treasuries plus 240 bps
|
| Price talk: | Treasuries plus 260 bps area
|
| ISINs: | XS2574267188, US445545AR73
|
|
|
| 2032 notes
|
| Amount: | $1.5 billion
|
| Maturity: | Sept. 22, 2032
|
| Coupon: | 6¼%
|
| Price: | 98.171
|
| Yield: | 6.509%
|
| Spread: | Treasuries plus 280 bps
|
| Price talk: | Treasuries plus 300 bps area
|
| ISINs: | XS2574267261, US445545AS56
|
|
|
| 2052 notes
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| Amount: | $1.25 billion
|
| Maturity: | Sept. 25, 2052
|
| Coupon: | 6¾%
|
| Price: | 95.729
|
| Yield: | 7.098%
|
| Spread: | Treasuries plus 325 bps
|
| Price talk: | Treasuries plus 350 bps area
|
| ISINs: | XS2574267345, US445545AT30
|
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