OTP Bank subordinated bond (EBRD-51013)

  • 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
Bank Risk Rating
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
Jun 5, 2019
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.
The holder of the loan, grant, or other investment.
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 67.37 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 60
Converted using 2019-07-17 exchange rate.
Project Cost (USD)
$ 561.38 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 500
Converted using 2019-07-17 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Jul 21, 2019

Disclosed by Bank Jul 17, 2019

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

According to the Bank's website, this project provided EUR 60 million in financing to OTP Bank in the form of a subordinated bond as part of a benchmark issuance of EUR 500 million. 

This project aims to support the resilience of OTP Bank. 

Investment Description

The Tier 2 capital eligible bonds have a 10-year maturity, are callable after five years and are listed on the Luxembourg Stock Exchange.

Financial Intermediary
Financial Intermediary: A commercial bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description

OTP Bank Nyrt. is the largest bank in Hungary, with an estimated 27% market share by domestic assets and one of the regional market players, operating in CEE and SEE regions. OTP Group operates in 10 countries and serves 18.5 million customers. The bank is listed on the Budapest Stock Exchange and is rated BBB-/Baa3 (S&P/Moody's). The subordinated bond issuance received a Ba1 rating (Moody's).

Contact Information

Gábor Fazekas
+ 36 1 288 75 36
+ 36 1 298-4896


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.