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OTP Mortgage Bank to start roadshow for covered bond

OTP Bank's mortgage arm will start a roadshow for a covered bond issue on July 12, Dow Jones reported on Friday, citing one of the banks managing the meetings with investors.

The roadshow will start in Vienna and continue in Germany, the UK and the Netherlands.

The transaction will be launched in the second part of 2011, subject to market conditions, Dow Jones said.

OTP Mortgage Bank deputy-CEO Csaba Nagy told MTI the bank plans to issue a 3- to 5-year Eurobond of at least €500 million.

The bank issued €1 billion of bonds in 2008, €1.05 billion in 2009 and €300m in 2010, Nagy said. The bonds had runs of two years, he added.

The 2008 bond was priced at 65bp over Euribor. The spread for the 2009 and 2010 bonds were 250bp and 200bp, respectively.

Nagy said the road show starting next Tuesday would wind up on July 18.

BNP Paribas, Citigroup and Morgan Stanley have been hired to manage the transaction, which will have a Baa1 rating by Moody's Investors Services.

OTP Mortgage Bank is rated Baa3 by Moody's Investors Services, and BBB- by Standard and Poor's.