Project description
and objectives:
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An additional equity investment of HUF 2.6 billion in Hungarian Foreign Trade Bank for the purposes of institutional development and to increase its loan portfolio.
The project aims to:
- support further growth of the loan portfolio of MKB and, in particular, its lending to the largest companies in Hungary;
- contribute to the institutional strengthening of MKB by providing additional equity; and
- support the development of the Hungarian capital markets.
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Transition impact:
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The investment will support the growth, development and strengthening of a quality private sector institution and the private sector in general by increasing the loan portfolio of MKB, thus providing term funds to the Hungarian industry.
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The client:
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Hungarian Foreign Trade Bank Ltd (MKB), one of the largest commercial banks in Hungary, specialising in corporate and private banking services. As of 30 June 1997, MKB had net worth totalling US$ 214 million and total assets of US$ 1,994 million.
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EBRD finance:
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The EBRD will participate in the capital increase of MKB by making an additional equity investment of ECU 12.1 million equivalent. The capital increase will be effected through the acquisition of the MKB treasury shares by the EBRD and Bayerische Landesbank Girozentrale. This will be followed by the closed subscription to the new ordinary shares to be issued to existing shareholders of MKB pro rata to their ownership percentages. Following the operation, the EBRD will own up to 17.6 per cent of ordinary voting shares of MKB.
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Total project cost:
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HUF 15 billion (ECU 70 million).
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Environmental impact:
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The project has been classified FI and therefore does not require an Environmental Audit. MKB is implementing environmental awareness policies as part of its operations policy.
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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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Allan Popoff, Operation Leader: popoffa@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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