Content area
Full Text
Kaupthing Bank brought the biggest Hungarian forint deal of the year this week with a Huf6.2bn ($34m) transaction. It was also the first time the bank had issued a Eurobond in what is still a relatively small market.
The bond carried a coupon flat to the three month Bubor and matures in July 2009. Lead managers were TD Securities.
"There have not been many deals in Hungarian Forint Eurobond market this year. The yield curve is negatively sloping and there has been some volatility there recently. This deal was reverse enquiry driven by a few investors who think rates won't be cut as heavily as expected," said a banker close the deal.
He also commented that a floating rate coupon was an important factor in the success of the deal. Because of the shape of the curve, a fixed rate deal would not have received the...