Government Bonds
Would you like to minimize the risk of your investment? Do you think in calculable short and medium and long term investment?
Secondary market (OTC) purchase and sale transactions of Hungarian government securities are available in every OTP Bank’s branches. For retail client the sales and purchase order are available via phone and internet.
We fixed another price for deal below HUF 10.000.000 and separate price for the deal above 10 Million HUF. In case of transactions above HUF 100 million the Bank is entitled to apply an individual price.
The pricelist of the government bonds is available in the branches. The list includes net exchange rates and the interest rates. In case of sales and purchase transactions the prices are the sum of these amounts.
The Treasury Saving Bill is a securities with maximum one year maturity, which issued by the Hungarian Government Debt Management Agency with 3,6 and 12 months maturity.
The auction of the Treasury Saving Bill with 3 months maturity is on every Tuesday on weekly basis, and the auction of the Treasury Saving Bill with 6 months maturity is on every peerless week on Wednesday and auction of the T-bill with 12 months maturity is on every peerless week on Thursday.
The securities issued at discount -the price lower than the face value of the securities, and the face value repaid on redemption date. The difference between the face value and the purchase price is the discount. The face value of the security is HUF 10.000.
To whom do we recommend?
We recommend this product to you if you are searching for a short term, predictable, low risk grade investment product and to mobilize quickly your investmentis important for you. You can sale this security easily within in one year, with any maturity on the active secondary market, OTC.
The interest bearing treasury bills are fixed rate governmental securities with a tenor of one year. Interest is paid at maturity. These securities are offered for sale continuously during a one week subscription period. Interest is accrued only from the issue date which falls on the following week of the closing of the subscription (Tuesday). These securities can be sold before maturity because retail primary dealers like OTP quote bid prices for these securities.
To whom do we recommend?
We recommend this security if you are able to undertake low risk and it is important for you to have liquid market to the security. There is an opportunity to reinvest the money at the maturity so it fits to be a long term investment.
Government bonds are securities with more than one year maturity.
Government bonds issued now with a 3, 4, 5, 10, 15 years maturity.
In case of fixed income government bonds on the date of the issuance the interest amount the interest period is determined.
Opposite to this by the variable income bonds just the conditions of interest paying and the date of interest paying defined. The interest is known to the actual interest paying period.
Government bonds pay on yearly basis the interest, the face value is pay off at the end of the maturity.
To whom do we recommend?
We recommend if you are searching for safe, predictable and medium and long-term investment with high grade of liquidity. However the government bonds are low risk associated investment products. (Guaranteed by the Hungarian Government). The yield of this product influenced by several economic factors on long term. (Base rate, inflation expectation etc.)
Premium Euro Hungarian Government Bonds are debt securities with 3, 4 year term and floating rate. The face value (base denomination) of the Premium Euro Hungarian Government Bond shall be EUR 1.00, that is one euro.A purchase statement can be made for at least 100 pieces (that is one hundred pieces) of Premium Euro Hungarian Government Bonds with a face value of one euro each, i.e. regarding Premium Euro Hungarian Government Bond(s) having the aggregate face value of at least one hundred euros.
Premium Euro Hungarian Government Bonds pay interest at end of each interest period, while the repayment of the face value shall be due in one amount at maturity.
The annual interest shall be equal to the sum of the interest base and the interest rate premium.
The interest base shall equal the percentage change of the final “Harmonised Index of Consumer Prices - all items” officially published as latest data by the European Commission (Eurostat) for the Participating Member States prior to the given date of interest determination,regarding the period between the second month preceding the date of interest determination and the same month of the preceding year, with the provision that if this value is negative, the interest base shall equal 0%, i.e. zero percent.The interest rate for the given interest period shall be determined on the 2nd (second) working day prior to the first day of the given interest period, except for the first interest period.
Premium Euro Hungarian Government Bond 2016/Y pays 1,7% interest per annum for the first interest period (21 May 2013 - 25 Oktober 2013), and the interest rate premium is 2.25% per annum.
The series of the Premium Euro Hungarian Government Bonds are issued through tap issue. Tap issue shall mean a method of public offering of debt securities are sold within a time frame designated by the issuer where the underlying securities have the same maturity.
To whom do we recommend?
We recommend this securities if you are able to undertake low risk and it is important for you to have liquid market to the securities.
This security is recommended mainly to investors
- who would like to place their savings in euro,
- who would like to invest on long term (3, 4 years) period,
- who would like to achieve higher interest rate premiums than the current deposit rates.
On the following homepages and on the homepage of the Issuer you could gather public information about the securities:
- OTP Fund Management
- OTP Funds portfolio report
- OTP Mortgages
- OTP Real Estate Fund
- Hungarian State Debt Management Agency/Államadósság Kezelő Központ (ÁKK)
- Hungarian National Bank/Magyar Nemzeti Bank (MNB)
- Budapest Stock Exchange/Budapesti Értéktőzsde (BÉT)
- Hungarian National Bank publications
- KELER Central Depository Ltd./KELER Központi Értéktár Zrt.