The main characteristics of the transaction:

Amount:   EUR 1 Billion
Tenor:  10.5 years
Maturity:  July 18, 2016
Coupon:   3.5 % p.a.
Issue price:  99.437%
Spread: January 2016 Bund + 29.7bps (equalling to midswap + 15 bps)

The transaction attracted significant demand from those countries (e.g. Spain, Portugal, Italy and France), where investors have not been considered as traditional buyers of Republic of Hungary bonds until now. The 1.5 times oversubscription enabled the leads to price the bond in line with the secondary market levels.

The proceeds will be used for general financing purposes.

January 10, 2006