With a well-defined organic growth strategy of the bank and proving that it is a reliable partner in providing financial services, OTP Bank Romania has announced in the last days of 2021 its second share capital increase this year, this time with more than 200 million lei.
OTP Bank reports a steady increase in lending and saving activities for the main business lines, at the same time with the execution of the Apollo growth strategy and several other transformation programs. Such results are based upon constant investments in digitalization and improvement projects, as well as in the expansion of the team, which implies the need for additional share capital.
Therefore, the General Shareholders Meeting held on December 15, 2021, approved the share capital increase of OTP Bank Romania with the amount of 200,000,160 lei through a capital cash contribution subscribed and paid by the OTP Bank Nyrt shareholder. As a result of the increase, 833,334 new shares were issued, with a nominal value of 240 lei each.
Thus, the current subscribed and paid-in share capital of the bank is 2,279,253,360 lei, representing a total number of 9,496,889 registered shares with a nominal value of 240 lei each.
Due to this increase, the shareholder structure is the following:
- OTP Bank Nyrt. holds 9,496,885 registered shares and a capital participation of 2,279,252,400 lei, representing 99,9999578809439% of total share capital.
- Merkantil Bank Zrt. holds 4 (four) registered shares and a participation of 960 lei, representing 0,0000421190561% of total share capital.
The capital increase was registered in the Trade Register’s database on December 20, 2021, a press release issued by the financial institution informs.
About OTP Bank Romania
OTP Bank Romania is a subsidiary of OTP Group, a universal bank with a very good presence in Central and Eastern Europe, that provides complete financial solutions, being active in the retail and corporate segment as well. From 2019, OTP Bank is going through an extensive transformation process, through which it aims to grow significantly in the business segments and also to create a better customer experience. Having a continuously growing team, that embraces change and harnesses its potential, OTP Bank Romania is building a culture of trust at every level of the organization. The bank ranks 9th in terms of assets in the ranking of banking players in Romania, according to the latest NBR data. In Romania, the OTP Group members are the following: OTP Bank Romania, OTP Consulting, OTP Leasing, OTP Asset Management, OTP Factoring, OTP Advisors and OTP Bank Romania Foundation.
OTP Group has more than 70 years of activity in the financial sector in Central and Eastern Europe, while the Romanian subsidiary has marked 17 years of presence in the local market. Promoting innovation, stable growth and integrated financial services, OTP Group has become a dominant player in the Central and Eastern European market and is considered an important banking group even on a European scale. The community of about 40 thousand employees serves nearly 16,3 million customers daily in 11 countries.
OTP Bank closes new successful international bond transactions
OTP Bank participated in the sovereign bond issue of the Republic of Albania as lead manager in November this year. On 18 November 2021, the Republic of Albania issued 10-year bonds of a total face value of EUR 650 million with a coupon rate of 3.75%, which is an excellent result for the bond’s current B+ rating. The bond transaction closed with substantial overbidding of over EUR 1 billion.
At the bond auction of MVM Zrt., 6-year corporate bonds of EUR 500 million were issued with OTP Bank’s assistance as co-distributor. The auction closed on 9 November 2022 with investors overbidding the ask price by more than 2.6 times. Maturing on 18 November 2027, the fixed-rate (0.875%) bonds were sold 110 bps above the benchmark yield with a coupon of 1.077%.
The Albanian issue marks the second international government bond issue in 2021 in which OTP Bank participated as lead manager. The first one took place in February, under which the Croatian government offered 12- and 20-year bonds to international investors at a total face value of EUR 2 billion. Despite the volatile market environment, the issue was accompanied by significant overbidding: the total value of the bids amounted to EUR 7 billion.
Both sovereign bond transactions and the corporate bond issue of MVM Zrt. were implemented under the Group-level coordination of the Capital Markets Origination unit of OTP Global Markets, headquartered in Budapest.
‘The success of the international transactions is owing to the collaboration between our colleagues at the Croatian, Albanian, and Budapest headquarters. The trinity of high-level expertise, local market intelligence and successful Group-level cooperation may become a dominant factor for additional market orders in the future,’ commented András Kazár, Head of OTP Bank’s Capital Markets Origination and Securities Services Department.
‘The successful international bond transactions conducted this year also indicate that OTP Group, as a leading banking group in Central and Eastern Europe, has joined the ranks of major bond market players in the region. This confirms that it was a good decision to integrate the capital market issuance activity of OTP Group at Group level and place it under the professional management of OTP Global Markets. Group-level vision combined with local expertise enables us to provide such a level of international cooperation that creates a sound basis for further steps forward in the international bond market,’ added Attila Bánfi, Managing Director of OTP Global Markets.