OTP group issues HUF 5 bln green mortgage bond

Banking

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OTP Mortgage Bank on Monday announced the issue of a HUF 5 billion green mortgage bond, the first one issued by a lender on the domestic market, according to a report by state news wire MTI.

Offers for the securities at auction came to HUF 10.1 bln.

OTP Mortgage Bank CEO András Becsei noted that the issue was a "first step" toward upgrading Hungary's stock of homes with low energy efficiency through mortgage lending.

The bank said investor demand for green bonds is on the rise, adding that a green mortgage bond purchase program the National Bank of Hungary (MNB) is launching in August should strengthen the trend.

MNB announced the HUF 200 bln green mortgage bond purchase program earlier.

OTP Mortgage Bank said it plans regular green mortgage bond issues.

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