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OTP Bank to borrow €200m from syndicate to fund business

Hungary's OTP Bank plans to borrow €200 million to fund its business, Bloomberg reported citing lenders on Thursday.

The two-year term loan will pay interest at 130 basis points above the Euribor, the banks said in a statement.

Credit Agricole CIB, Erste Group Bank AG, HSBC Holdings Plc, ING Groep NV, Intesa Sanpaolo SpA, Raiffeisen Zentralbank Osterreich AG, Standard Chartered Plc and UniCredit SpA are arranging the deal.

A one-year €220 million syndicated loan signed by OTP Bank in December 2009 paid an interest premium of 125bps over the Euribor, Econews reported earlier.

OTP Bank is Hungary's biggest commercial bank, and it reported first-quarter consolidated IFRS net income of HUF 42.4 billion, up 1% yr/yr as operating costs and its corporate-tax payment dropped but risk provisions grew. Consolidated total assets stood at HUF 9,526.706 billion on March 31, down 6% from twelve months earlier and down 2% from the previous quarter. (MTI-Econews)