OTP Hungary Equity Investment

complete

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: 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. 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. 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. 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 procedures applied by OTP to its lending and investment activities comply with the requirements of the EBRD. None.