ÁKK reaches 32% of the annual issuance plan at the end of March

The government’s Debt Management Agency (ÁKK) said it had reached 32% of its annual issuance plan by the end of the first quarter, according to a report by state news wire MTI.

ÁKK issued 2,266,000,000,000,000 HUF of securities, not including transfer issues, against an annual target of 7,078,000,000 HUF.

Issues in the first quarter included HUF 683 billion of forint bonds and HUF 321 billion of forex bonds to institutional investors.

Outstanding debt held by institutional investors reached HUF 21.848 billion at the end of March and included HUF 125 billion of municipal bonds.

Non-resident holdings accounted for 20.7% of the total, slightly above the 20% rate at the end of 2021.

ÁKK noted that it issued 75.3 billion yen of Samurai bonds in February, before the outbreak of the Russian-Ukrainian war, and drew 147 million euros from the European Union’s SURE loan facility. end of March.

The foreign currency debt ratio reached 20.4% at the end of the quarter, still below the top of AKK’s benchmark range of 10-25%, leaving a “significant margin” for net foreign currency funding, the agency said.

“Additional foreign exchange operations may be carried out during the remainder of the year in accordance with the approved financing plan if market conditions prevail,” he added.

Retail issues amounted to 1.262 tln HUF, or 38% of the annual target, supported by more than 500 billion HUF of five-year inflation-linked premium Hungarian government security issues. However, ÁKK said the total stock of retail securities in circulation now stands at 9.796 billion HUF, which is 117 billion HUF below the level at the end of 2021. The stock increased by 143 billion HUF in January-February , in line with the pro rata target, but the market turmoil after the outbreak of the war and rising interbank interest rates caused the stock to fall HUF 260 billion, mainly due to early redemptions of old bonds Popular Hungarian Government Securities Plus. About 10% of investors redeemed the Plus Bonds in the first quarter, compared to an average prepayment rate of 3.9% since the security’s launch in June 2019.

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