Hungary starts $1.35 billion tender offer covering three notes

Chicago, June 7 – Hungary launched a tender offer capped at $1.35 billion total nominal amount of notes covering three series, according to an announcement.

At priority acceptance level one, Hungary is offering to buy from the $1,517,582,000 outstanding of the original $2 billion 5 3/8% notes due 2023 (Cusip: 445545AH9) with pricing to be determined using the 0.125% U.S. Treasury due February 2023 plus 55 basis points.

The tender offer covering the other two series will be conducted as a modified Dutch auction.

At priority level two, the tender offer covers the $1,631,160,000 outstanding of the original $2 billion 5¾% notes due 2023 (Cusip: 445545AJ5) with pricing to be based on the 0.25% U.S. Treasury due November 2023 and a maximum purchase spread of 90 bps.

Also at priority level two, the tender offer covers the $1,794,010,000 outstanding of the original $2 billion 5 3/8% notes due 2024 (Cusip: 445545AL0) with pricing to be based on the 2.25% U.S. Treasury due March 2024 and a maximum purchase spread of 95 bps.

Accrued interest will be paid on all of the notes.

Allocation of accepted notes will be decided at a later time.

Non-competitive tender instructions will be accepted before competitive tender instructions in the modified Dutch auction tender offers.

Competitive tender instructions should be in 1 bp increments.

Tenders may be prorated for the November 2023 and March 2024 notes.

The offers are subject to a new financing condition.

Hungary announced that it is offering new dollar- and euro-denominated notes on Tuesday morning.

The offer ends at 5 p.m. ET on June 13.

An announcement of indicative series acceptance amounts and indicative details of scaling will be released at 5 a.m. ET on June 14.

Pricing will take place at 7 a.m. ET on June 14.

Settlement is planned for June 16.

The dealer managers for the offer are BNP Paribas (+33 1 55 77 78 94, liability.management@bnpparibas.com), Deutsche Bank AG (+44 20 7545 8011), Goldman Sachs Bank Europe SE (+44 207 7744836, liabilitymanagement.eu@gs.com), ING Bank NV (+44 20 7767 6784, liability.managemnt@ing.com) and J.P. Morgan SE (+44 20 7134 2468, em_europe_lm@jpmorgan.com).

Kroll Issuer Services Ltd. is the information and tender agent (+44 20 7704 0880, hungary@is.kroll.com,

https://deals.is.kroll.com/hungary).

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