Project description
and objectives:
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The project consists of the acquisition of 560,000 shares of OTP Bank at a share price of US$ 40.98 per share, resulting in a total amount of US$ 22.95 million. The operation supported OTP’s final stage of privatisation.
The principal objectives of the project were:
- to support the final stage of OTP Bank’s privatisation by contributing to the success of the public offering; and
- to support, as a committed main shareholder in the bank, OTP’s regional expansion.
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Transition impact:
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By supporting the on-going privatisation of a major Hungarian bank, which has substantial business with domestic munici-palities and is committed to lending to small and medium-sized enterprises (SMEs), the EBRD is contributing to the promotion of a sound banking system in Hungary. As a significant shareholder, the EBRD will support the bank in establishing long-term competitiveness in an international context.
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The client:
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OTP is Hungary’s largest bank in terms of assets, with the largest branch network and customer deposit base. The bank has a capable and highly regarded management team that is among the market leaders in terms of restructuring and product innovation. OTP is well-known to the EBRD from two existing operations.
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EBRD finance:
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As part of OTP Bank’s final stage of privatisation through a public offering, the EBRD purchased 2 per cent of OTP Bank’s capital.
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Total project cost:
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The EBRD purchased 560,000 shares at a price of US$ 40.98 for a total amount of US$ 22.95 million (EUR 21.53 million).
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Environmental impact:
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Environmental procedures applied by OTP to its lending and investment activities comply with the requirements of 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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Pal Rajnai, Operation Leader: rajnaip@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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