OTP Hungary Equity Investment

Location:

Hungary

Project number:

7794

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

19 Oct 1999

Status:

Complete

PSD disclosed:

01 Nov 1999

Project Description

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.

Transition Impact

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.

The Client

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.

EBRD Finance

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.

Project Cost

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).

Environmental Impact

Environmental procedures applied by OTP to its lending and investment activities comply with the requirements of the EBRD.

Technical Cooperation

None.

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Share this page: