Investors jump on world’s longest green bond
Hungary’s new 30-year forint-denominated sovereign green bond made its auction debut on Thursday when the ÁKK offered to sell HUF 20 bn of the 2051/G series. Primary dealers placed bids worth HUF 140.7 bn, of which the debt manager accepted HUF 30 bn, the maximum amount allowed. The average yield was 3.69%, which means investors bought the bonds, which offer a coupon rate of 4%, at above face value.
The new green bond is not just a milestone in Hungary, as it is the longest sovereign green bond in the world according to Bloomberg. The ÁKK is trying to address the growing ESG fund manager segment with the bond, having issued bonds denominated in euro and Japanese yen last year.
The good mood carried over to other bonds as well at Thursday’s auction as demand for the HUF 30 bn 2026/F bonds was HUF 107.4 bn, of which the ÁKK accepted HUF 45 bn. The average yield was 1.73%, 5bp lower than the secondary market benchmark. The debt manager also sold HUF 37.5 bn of the 2033/A bonds after investors placed bids totalling HUF 51.1 bn on the HUF 25 bn on offer. The average yield was 2.69%, in line with the secondary market fixing.
Cover photo: Getty Images
