Hungary has issued $4bn in dollar-denominated bonds with maturities from five to 30 years, according to Bloomberg.

The transaction included $1.5bn in five-year notes, a $1bn 10-year tranche, and $1.5bn in bonds maturing in 2055.

Market sources indicated that demand for the three tranches of bonds reached $10.5bn, while yield spreads narrowed compared to initial guidance.

According to indicative pricing, the five-year bond may carry a yield of around 5.8% (175bp above the corresponding US Treasury yield), the ten-year bond 6.5% (+205bp), and the 30-year bond 7.3% (+235bp), financial website Portfolio.hu reported during the day.

AKK is expected to announce the final issue size and pricing within days, after swapping the proceeds into euros.

The bond issue comes a week after the state debt manager AKK revised its financing plan with the target of boosting FX issues to meet the growing financing needs of the budget.

The National Economy Ministry (NGM) raised its cash-flow deficit forecast by HUF651bn (€1.62bn) to HUF4.7 trillion for 2025 (from 3.7% to 4.1%) as the end-of-May deficit stood at 68% of the full year target.

To meet the higher deficit targets, the debt manager raised its net foreign-currency issue target from HUF838bn (€2.1bn) to HUF1.68 trillion (€4bn).

The bond issue will lift the share of FX financing to 30.2% of state debt, a fraction over the 30% target threshold, which, according to AKK, could remain above 30% at the end of 2026.

According to an earlier announcement, the AKK could soon issue Panda bonds on the Chinese market.