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OTP gets go-ahead to buy back bonds early

Hungarian financial market regulator PSzÁF has given the green light to OTP Bank to buy back bonds which are part of subordinated capital ahead of maturity, a resolution published on PSzÁF's website reveals.

OTP plans to buy back bonds worth €100 million before they mature on March 4, 2015. OTP issued the bonds, which are part of its subordinated capital, to a total nominal value of €125 million on March 4, 2005.

The issue was managed by JP Morgan (London) and was designed to finance the expansion of outlays to clients and the bank's technical development program.

The bonds pay interest of 55 basis points over the three-month Euribor quarterly, and were issued at par.