The main characteristics of the transaction:

Amount:   EUR 1 Billion
Maturity:  July 4, 2017
Coupon:   4.375 % p.a.
Issue price:  99.384%
Spread: Bund 3.75% due January 2017+ 43.8 bps (equalling to midswaps + 21 bps)
   

The transaction attracted significant demand from countries and regions (e.g. Scandinavia, Spain, Portugal, Benelux countries), where investors have not been considered as traditional buyers of Republic of Hungary bonds until now. The twice oversubscribed book enabled the leads to price the bond in line with the secondary yield curve.

The proceeds will be used for general financing purposes.

Budapest, January 23, 2007