MKB Bank Nyrt plans a ten-year subordinated bond issue worth €120 million as part of its bond program registered in Luxemburg, MKB announced in capital markets gazette Magyar Tőkepiac on Tuesday.
Lead manager of the private issue will be MKB's majority owner BayernLB. Proceeds from the issue will probably be used to pay for MKB's acquisition of a majority stake in Romania's Romexterra Bank. MKB announced on September 14 it had already succeeded in acquiring the minimum targeted 50%-plus-one-vote stake in Romexterra Bank well before the offer's September 23 deadline. MKB did not reveal how much it offered for the shares but Romanian press reports said the price was €1.66 per share. Romanian press calculated the packet would cost €40.64 million but if all shareholders offered their shares it would cost €80 million. Romexterra has 43 branches at present and a market share of 0.9%.