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OTP continues buyback of subordinated bonds due in 2015

Hungary's OTP Bank has bought back bonds to a nominal value of €1.15 million of a subordinated bond series due on March 4, 2015, the bank said on Friday.

OTP Bank has initiated the withdrawal of the bonds by the date of September 8, 2011, the bank said, referring to the bond's issue documents allowing for such a step.

The withdrawal will leave €121.85 million of the series outstanding.

The bank started to buy back the series late August, and this is the third instalment it bought back and withdrew ahead of maturity.

OTP Bank issued €125 million in ten-year subordinated bonds in March 2015. The bonds carry a floating interest rate of 55 basis points over the three-month Euribor, paid quarterly, earlier Econews information shows. The issue was managed by JP Morgan, London, and the bonds were introduced on the Luxembourg Stock Exchange.