Project description
and objectives:
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A subordinated loan worth US$ 50 million for a term of 10 years.
The principal objectives of the project are to:
improve OTP's capitalisation;
enable OTP to expand its business activities, including its private sector loan portfolio;
enable OTP to meet the National Bank of Hungary's prudential requirements.
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Transition impact:
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As the third-largest bank in Hungary, with over 30 per cent of the country's banking assets, OTP plays an important role within the country's banking system and acts as a financial intermediary for the enterprise sector. The project will strengthen OTP's capital base and enable it to serve its corporate clients more effectively.
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The client:
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OTP Bank Limited (OTP) is the National Savings and Commercial Bank of Hungary. Originally founded in the 1840s, OTP was nationalised in 1947 and reorganised as a state-owned joint-stock company in 1989. In 1995 majority ownership passed to the private sector and the bank's shares are now quoted on the Budapest stock exchange.
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EBRD finance:
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A subordinated loan up to the equivalent of US$ 50 million, which will form part of OTP's capital base.
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Total project cost:
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Up to the equivalent of US$ 50 million (ECU 40 million).
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Environmental impact:
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The project has been classified C/0 (it does not require an environmental analysis or an environmental audit). OTP will carry out its operations in accordance with the EBRD's "Environmental Procedures for Local Banks", which provide for the integration of environmental due diligence into such banks, credit and investment appraisal processes and a requirement that borrowers comply with national and local health and safety and environmental regulations and standards. OTP will submit annual environmental reports to the EBRD.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Jonathan Harfield, Operation Leader: harfielj@mos.ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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