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EBRD issues HUF 20 bln July 2002 global bond
The European Bank of Reconstruction and Development (EBRD) yesterday issued the first-ever Global bond denominated in the Hungarian forint. The HUF 20 billion bond has a one-year maturity, carries a coupon of 9.25 per cent and is priced to yield 9.55 per cent.
The bond is part of the EBRD's normal funding programme, but, more importantly, is a strong signal of the Bank's commitment to the Hungarian capital markets, said Ayesha Shah, EBRD Deputy Treasurer and Head of Funding. The EBRD was the first to launch domestic Hungarian forint bonds in 1994, and yesterday was the first to launch a global issue. "Investors believe that Hungary is liberalising its capital market as a step towards EU accession and are upbeat on the prospects for the currency," Ms Shah said.
The issue is lead managed by Morgan Stanley and is syndicated. The bonds will be cleared through Clearstream and DTC.
The EBRD has been an active issuer of bonds in local central and east European currencies. It has launched 18 Polish zloty issues since 1996, including the first synthetic issue, the first PLN-settled issue and the first benchmark PLN 1 billion global bond last year. The EBRD has also been an active issuer in the Czech koruna, Estonian kroon and Slovak koruna markets.
The Hungarian government recently announced its intention to relax restrictions on the country's HUF foreign exchange laws, expected to take effect next week..
Following are terms and conditions of the bond:
Issuer: EBRD
Issue amount: Hungarian Forint 20 billion
Maturity Date: 5 July 2002
Coupon: 9.25 per cent
Issue price: 100.73 per cent
Reoffer price: 99.73 per cent
Lead Manager: Morgan Stanley
Ratings: Aaa (Moody's), AAA (S&P)
Listing: London
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