OTP Hungary Treasury Shares

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The Project consists of a €200 million subordinated loan to OTP Bank Plc in Hungary. A further €20 million is being used to acquire OTP treasury shares. The subordinated loan facility will be available for draw-down for a period of six months. The Project will enhance the capital of OTP, thereby helping the bank to mitigate the impact of the recession and strengthen its market position in the current challenging environment in Hungary as well as in the region in which it operates. In turn, this will contribute to raising the overall level of confidence in the banking sector in Hungary and in the region. The main rationale for EBRD’s involvement in the Project is to provide capital support to a strong bank with a regional presence throughout Central and Eastern Europe and systemic importance in most of the markets where it operates. The transition impact of this transaction comes mainly from supporting OTP in the process of adapting its business model to the changing macroeconomic environment. OTP Bank is the largest universal bank in Hungary and the biggest independent bank in central Europe. With almost 12 million customers in nine countries, OTP subsidiaries are among the top ten largest banks in Ukraine, Bulgaria, Croatia and Montenegro. The total operation amount is €220 million. OTP will conduct its business in accordance with the PR2, implement EBRD's Environmental and Social Procedures in accordance with the PR9 and submit annual environmental and social reports to the Bank. In implementing the Environmental and Social Procedures, OTP will adhere to the Environmental and Social Exclusion and Referral Lists and assess potential environmental and social issues associated with its investments, which are required to comply, at a minimum, with local/national health and safety, environmental, social and labour requirements. None. OTP Bank Plc, Contact: Sándor Pataki, Tel: +36 1 473 5457 Email: patakis@otpbank.hu