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Hungary plans multi-tranche bond sale to cover EU funding delay


Hungary plans to offer a range of dollar and euro bonds to shore up its budget as it’s facing a potential delay in accessing European Union funds because of a feud with the bloc over democratic values, according to Bloomberg. 

The country may sell 10-year and 30-year bonds in dollars, as well as seven-year and/or 20-year bonds in euros, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak about it.

On Monday, Hungary’s debt management agency increased its cap for 2021 foreign-currency borrowing to 4.5 billion euros ($5.3 billion) from 644 billion forint ($2.2 billion).

Hungary’s access to EU funds came into jeopardy because of Prime Minister Viktor Orban’s defiance to fight corruption, reverse a judiciary overhaul and end a crackdown on LGBTQ rights. Orban is facing parliamentary elections, most likely in April 2022, which may be the most closely-fought vote in more than a decade.

Hungary mandated BNP Paribas SA, Citigroup Inc., Goldman Sachs Group Inc. and JPMorgan Chase & Co. to arrange the bond sales.