The Hungarian Government Debt Management Agency (AKK) has again entered the foreign capital market in early January, in line with its recent practice of issuing a large portion of its FX at the start of the year.

AKK launched the issuance of seven- and twelve-year euro-denominated bonds on Wednesday, with the longer maturity potentially being a green bond, according to Reuters. Pricing is expected to be set later in the day, depending on investor demand, financial website Portfolio.hu cited the report.

The size of the current issuance has not been disclosed and will depend on investor demand, and further foreign-currency issues cannot be ruled out.

The AKK mandated the issuance of a seven-year eurobond maturing in May 2033 and a twelve-year eurobond maturing in March 2038. The longer-dated bond may be issued as a green bond.

The indicative prices suggest the seven-year bond may be priced around 190bp over the euro-dollar midswap rate, while the twelve-year bond could be priced around 220bp.

The seven-year euro midswap currently stands at 2.67%, and the twelve-year at 2.97%, implying target yields of around 4.5% and 5.2%, respectively. In the event of strong investor demand, the spreads may narrow during the day.

AKK’s 2026 financing plan published late last year, outlined a gross foreign-currency financing target of €9.6bn and a net €6.6bn for 2026, which also includes around €2 bn from a potential EU SAFE loan, subject to approval.

The issuance is expected to raise the share of foreign-currency debt within total government debt. The three-month average stood at 29.9% at end-2025, while ÁKK now allows a ±3pp point deviation around the 30% benchmark. According to its latest investor presentation, the ratio is projected to reach 31.2% by year-end.,