government securities

available at all K&H branches

various returns, fix, step-up or floating rate coupons
bonds issued after 1 June 2019 are exempt of interest rate tax

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 can be purchased through:
- primary market (the market where new issues are sold) at auction or via tap issue depending on securities type
- secondary market (the market where issued securities already in circulation)
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

	Premium Hungarian Government Security (PMÁP)	Bonus Hungarian Government Security (BMÁP)	Fix Hungarian Government Security (FixMÁP)
type	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 1 from 29 September 2022 (previously HUF 1000)	HUF 1	HUF 1
tenor	3-10 years	3 and 5 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)	3 years
interest	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	fixed-interest-bearing, quarterly.
return	varies by day subject to market price	varies by day subject to market price	varies by day subject to market price
distribution	daily tap issue	daily tap issue	daily tap issue


stock exchange listing	not listed at the Budapest Stock Exchange	not listed at the Budapest Stock Exchange	not listed at the Budapest Stock Exchange
investors	resident or non-resident natural persons	resident or non-resident natural persons	resident or non-resident natural persons
target market	customers with expenses and income in Hungarian forints	customers with expenses and income in Hungarian forints	customers with expenses and income in Hungarian forints
sales limit	yes its amount is determined in the Prospectus and the Public Offering	yes in case of the 3- and 5-year series its amount is determined in the Prospectus and the Public Offering	yes its amount is determined in the Prospectus and the Public Offering


	Hungarian Government Bond (MÁK)	Discount Tr easury Bill (DKJ)	Hungarian Government Security Plus (MÁP Plus or MÁP+)
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)
dedomination	HUF 10 000	HUF 10 000	HUF 1
tenor	3, 5, 7, 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	5 years
interest	typically a fixed-interest securities but floating rate versions are also issued	non-interest-bearing	fixed-interest-bearing securities, with step-down up coupon rates coupon paid in securities - in the same trench during the tenor and in cash on maturity 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
distribution	at auction	at auction	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
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
target market	resident or non-resident natural persons, without limitation	resident or non-resident natural persons, without limitation	customers with expenses and income in Hungarian forints
sales limit	no	no	yes its amount is determined in the Prospectus and the Public Offering

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.

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government securities

available at all K&H branches

conditions