EBRD to subscribe OTP Tier 2 notes

The EBRD's 2011 Annual Meeting in Astana, Kazakhstan, 20-21 May 2011

The European Bank for Reconstruction and Development (EBRD) said Wednesday it will invest EUR 60 million in subordinated bonds issued by OTP Bank, "supporting the successful return of OTP Bank to the international capital markets."

The issue marks the first time OTP has tapped international markets with a benchmark size issue since 2006, the EBRD noted. The EBRDʼs funds will be used by OTP to “finance investments in the green economy such as energy efficiency and renewable projects,” according to Hungarian news agency MTI.

A total of EUR 500 mln of Tier 2 notes were issued at a price of 99.738%, with a value date of July 15, 2019. The ten-year notes pay a fixed annual rate of 2.875% in the first five years. Thereafter, they pay a rate of 320 basis points over five-year euro mid-swaps at the end of the first five years of their run.

The notes are rated “Ba1” by Moodyʼs Investors Service Cyprus Limited. They are listed on the Luxembourg Stock Exchange.

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