Hungary is looking to issue Samurai bonds as early as next month, Reuters reported on Wednesday, citing several market sources. There is not much to know about the details but the country’s Economy Minister had signalled already at the end of 2017 that Hungary could issue a Samurai bond in 2018.
Hungary filed a shelf registration to the Kanto Local Finance Bureau on July 14 to issue up to 100 billion yen (USD 933 mn) of Samurai bonds and up to JPY 100 bn of Uridashi bonds, the news agency said.
The sources did not say whether the Government Debt Management Agency (ÁKK) were just hiring or had already hired the lead banks.
On 19 December, Hungary's Economy Minister Mihály Varga said the country could issue a Samurai bond in the first half of 2018 in order to maintain its presence on the Japanese market. 19/12/2017 1:23pm
Hungary relies on households in 2018 debt financing plan
This would be Hungary's first yen issuance since it sold JPY 25 bn of 10-year bonds via Mizuho and Nikko Citigroup in October 2007. This was what expired last year and this is why it could be worth going to the Japanese market again. The first such bond was issued in 2004. A total of JPY 200 bn worth of yen bonds were issued by Hungary in five transactions.