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EBRD issues HUF 13 billion 2006 Eurobond
Second HUF issue in 2004 underscores commitment to Hungarian market
The EBRD has issued its second Eurobond denominated in Hungarian forint this
year, taking advantage of international investor appetite for HUF bonds
following Hungary’s accession to the European Union.
The Bank’s HUF 13 billion bond, issued Wednesday, has a two-year maturity and
pays a coupon of 10.00 per cent, with an issue price of 101.420 per cent,
yielding 9.19 per cent. The issue is lead-managed by Fortis Bank and is
syndicated to a group of international banks. The bonds will be cleared
through Euroclear and Clearstream.
The EBRD was the first issuer to launch domestic HUF bonds in 1994, and it was
the first to launch a Global HUF issue in June 2001, following the decision of
the Hungarian Government to relax restrictions on the country’s HUF foreign
exchange laws.
The EBRD has been an active issuer of bonds in local central and east European
currencies. It has issued 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. The EBRD has also been an active issuer in the Czech
koruna, Estonian kroon, Russian rouble and Slovak koruna markets.
Following are terms and conditions of the bond:
Issuer: European Bank for Reconstruction and Development (EBRD)
Issue Amount: Hungarian Forint 13 billion
Maturity Date: 27 October 2006
Coupon: 10.00 pct
Issue price: 101.420 per cent
Lead Manager: Fortis Bank
Ratings: Aaa (Moody's), AAA (S&P), AAA (Fitch)
Listing: London Stock Exchange
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