government securities

available at all K&H branches

  • government securities issued by the Hungarian State
  • various returns
  • fix, step-up or floating rate coupons
  • bonds issued after 1 June 2019 are exempt of interest rate tax persuant to the Hungarian Personal Income Tax Act

details

security

government securities are secure form of investment

liquidity

they can be sold on the secondary market (securities market) at market price at any time

flexibility

wide range of tenors

  • government securities may be bought:
    • on the primary market (the market where new issues are sold) by subscription, at auction or via tap issue depending on securities type
    • on the secondary market (the market where securities already issued are bought and sold)
  • tax payable on the income from government securities, classified as interest income, is deduced from clients in accordance with the prevailing legislation
  • bonds issued after 1 June 2019 are exempt of interest rate tax persuant to the Hungarian Personla Income Tax Act

 

Government securities are kept on securities account.

conditions

announcement on investment services and securities
general terms and conditions for investment and complementary investment services provided by K&H Bank
 

Hungarian Government Bond

Discount Treasury Bill (DKJ)

1-year Interest-bearing Treasury Bond (1MÁP)

Hungarian Government Security Plus MÁP+

PMÁP

BMÁP

type

transferable, interest-bearing government security issued in dematerialised form

transferable, noninterest-bearing government securities issued in dematerialised form (registered electronically)

transferable, interest-bearing government security issued in dematerialised form (registered electronically)

transferable, interest-bearing government security issued in dematerialised form (registered electronically)

transferable, interest-bearing government security issued in dematerialised form (registered electronically)

transferable, interest-bearing government security issued in dematerialised form (registered electronically)

dedomination

HUF 10 000

HUF 10 000

HUF 10 000

HUF 1

HUF 1 from 29 September 2022 (previously HUF 1000)

HUF 1

tenor

3, 5, 10, 15, 20 or 30 years

sold for a 3-,6- and 12-month-term in the primary market but they can be purchased for any remaining term in the secondary market within a year

1 year

5 years

3-10 years

3 years (previously 4,6 and 10 years which sale was ceased after 1 June 2019 by ÁKK- these tranches are not distributed by K&H Bank)

interest

typically a fixed-interest securities but floating rate versions are also issued

non-interest-bearing

fixed-interest-bearing security, with the coupon paid on maturity

fixed-interest-bearing securities, with step-downup coupon rates coupon paid in securities - in the same tranch during the tenor and in cash on maturity

repayment of the principal is due in lump sum at maturity 

floating-rate-interest-bearing securities, with annual coupon payment

coupon consists of interest base linked of previous year Hungarian consumer price index published by KSH and a premium

date of interest rate fixings and the premium level are set out in public offering circular of the tranches

repayment of the principal is due in lump sum at maturity 

floating-rate-interest-bearing securities, with quarterly (previous tranches with annual) coupon payment

coupon consists of interest base which equals to the a weighted avarage of 4 successful 3-month-discount-treasury bill auctions prior to the fixing date and a premium

date of interest rate fixings and the premium level are set out in public offering circular of the tranches

repayment of the principal is due in lump sum at maturity 

return

interest is paid annually or semi-annually
varies by day subject to market price

equals to the discount rate, i.e. the difference between the face value and the purchase price

varies by day subject to market price

varies by day subject to market price

varies by day subject to market price

varies by day subject to market price

distribution

at auction

at auction

at face value during a-week-subscription period

at face value during a-5-business- day-subscription period.

new tranche is issued after each subscription period

daily tap issue

daily tap issue

stock exchange listing

listed on the Budapest Stock Exchange following issuance

the six-month and twelve-month discounted treasury bonds are listed on the Budapest Stock Exchange following issuance

not listed at the Budapest Stock Exchange

not listed at the Budapest Stock Exchange

not listed at the Budapest Stock Exchange

not listed at the Budapest Stock Exchange

investors

Discount Treasury Bills may be purchased by natural and legal persons, other entities without legal personality

Discount Treasury Bills may be purchased by natural and legal persons, other entities without legal personality

resident or non-resident natural persons

resident or non-resident natural persons

resident or non-resident natural persons

resident or non-resident natural persons

We draw your attention to the consumer protection website of Financial Navigator Advisory of the National Bank of Hungary where you can find useful product descriptions and various applications for comparison (loan calculator, budget calculator for households).

The present information is a marketing communication and it does not qualify as an offer, it is intended merely to attract attention. For a detailed description and conditions of the product, service, please consult the client contract, the General Contracting Terms and Conditions for Banking Services requiring Electronic Identification, the General terms and Conditions on Investment Services, the current K&H Bank’s announcement on the bank accounts, deposits, cash transactions, bankcards and investments of premium banking clients and the current announcement on the bank accounts, deposits, cash transactions, bankcards and investments of private banking customers. The Bank reserves the right to modify conditions.