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OTP Bank issues RUB 2.5 bln bond in Russia

OTP Bank completed its first bond issue in Russia on March 25, selling RUB 2.5 billion (EUR 62.7 million) of papers against offers of RUB 17 billion, the bank told MTI on Monday.

The three-year bonds pay a fixed annual 8.25%, 170bp over the yield of the three-year Russian government security.

OTP Bank will use the proceeds from the issue to finance consumer lending in Russia. The issue was also intended to diversify financing, the bank said.

The bonds will be listed on Russia's MICEX exchange on March 29.

After-tax profit of OTP Bank's Russian unit rose to 20.5 billion in 2010 from HUF 3.1 billion in 2009, deputy-CEO Laszlo Bencsik said early in March, after the bank published its Q4 report. OTP Bank Russia is runner-up on the market for consumer loans and number four on the market for credit cards, he said.