Republic of Hungary’s €1bn 2011 Eurobond
Dresdner Kleinwort Wasserstein and JPMorgan were joint bookrunners
Hungary’s €1bn Eurobond was significant for establishing a new pricing benchmark for EU accession countries. The deal achieved the most cost-effective funding to date, priced at mid-swaps plus 12bp – a rare achievement. This translated into a coupon of 3.625% with a reoffer price of 99.454%. By the time of the launch, the order book was comfortably oversubscribed and, as a result, excess demand translated into solid secondary market performance.
The judges also took note of the expanded and diversified investor distribution, with increased participation from first-time buyers of EU accession country paper. Whereas in the past, up to two-thirds of demand came from Germany, appetite was seen for the first time in Belgium, Austria, Italy, Portugal and Greece.
