Stephen III of Hungary had married a daughter of Yaroslav Osmomysl of Halych, in 1167 but he had repudiated her in 1168 and sent her back to her father.

Stephen had then married Agnes of Austria, a daughter of Duke Henry II of Austria, shortly after and launched a campaign against the Constantinople with the support of his father-in-law, but their troops had been defeated near Zimony.

Stephen has raised money to fund the expenses of his continuous wars with the Empire by using the goods of the Church, which had resulted in a conflict with Archbishop Lukas, who imposed ecclesiastical punishment on him.

The conflict had been solved by the Papal Legate Manfred, who had persuaded Stephen to renounce the right of investiture.

Stephen has granted estates to the Knights Templar in Hungary, and he is the first king of Hungary to issue a charter for a town, i.e., for the Walloon hospes of Székesfehérvár.