Investment in OTP Mortgage Bank covered bonds (EBRD-48989)

Countries
  • Hungary
Where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Feb 8, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
OTP Mortgage Bank
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 138.99 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported 130 million
Converted using 2017-02-08 exchange rate.
Loan Amount (USD)
$ 138.99 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported 130 million
Converted using 2017-02-08 exchange rate.
Project Cost (USD)
$ 1,042.42 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Currency conversion note:
Bank reported 975 million
Converted using 2017-02-08 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Feb 22, 2018

Disclosed by Bank Mar 2, 2017


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Project Description

According to EBRD website, the covered bond transaction will support OTP MB to access medium- to long-term funding outside OTP Group and to comply with the mortgage funding adequacy ratio introduced by the National Bank of Hungary with the objective to improve the maturity mismatch between HUF-denominated assets and liabilities in the banking sector.

Further, it will contribute to the resilience of the financial sector in Hungary by:

1. revitalising the Hungarian covered bond market
2. supporting the NBH initiative to strengthen banks' balance sheets through reduction of the asset - liability maturity mismatch in the banking sector, where long term mortgage assets are predominantly funded by very short-term deposits and; 
3. improving the environment for mortgage funding.

 

Investment Description
  • European Bank for Reconstruction and Development (EBRD)
Contact Information

Project Contact: Tamás Soós
OTP Mortgage Bank, Treasury & Issuance
Email Address: soos.tamas@otpjzb.hu
Telephone No.: +36 1 354 7473, +36 1 354 7482
Website: www.otpjzb.hu


General enquiries to EBRD: 
Telephone No.: +44 20 7338 7168
Email Address: projectenquiries@ebrd.com

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.