Lakatos Koves & Partners Advises Arrangers on Hungary’s Sovereign Issuance

Lakatos Koves & Partners Advises Arrangers on Hungary’s Sovereign Issuance

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Lakatos, Koves & Partners, working with Clifford Chance, has advised lead arrangers BNP Paribas, Citi, Goldman Sachs Bank Europe, and J.P. Morgan on Hungary’s EUR 1 billion and USD 4.25 billion London-listed sovereign issuances. Solo practitioner Zsolt Szita advised the Hungarian state on the matter.

According to LKT, the issuances are aimed at investors in Europe and the USA.

The Government Debt Management Agency (AKK) said Hungary sold USD 2.25 billion worth of ten-year bonds with a 2.125% coupon and USD 2 billion worth of 30-year bonds with a 3.125% coupon, at 100 basis points and 150 basis points over corresponding U.S. Treasuries.

AKK also stated that it modified its 2021 issue plan to make room for an additional EUR 4.5 billion in foreign bonds to help cover a likely delay in the European Union's COVID recovery fund money, for certain government expenditures in 2021, and for partial pre-financing of the 2022 budget deficit.

LKT and Zsolt Szita worked on a similar matter four years ago – Hungary's EUR 1 billion sovereign bond issuance (as reported by CEE Legal Matters on October 24, 2017).

LKT’s team included Partners John Fenemore and Szabolcs Mestyan and Associate Agnes Abraham.