OTP Bank successfully closes international bond transactions
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OTP participated in two successful international bond transactions in November. As a member of a syndicate of dominant investment banks in the international bond market, OTP as a leader supported the issuance of international sovereign bonds by the Republic of Albania with a total face value of 650 millions of euros. As a co-distributor, she also participated in the first international bond issue of 500 million euros of MVM Zrt.
On November 18, 2021, the Republic of Albania issued 10-year bonds with a total face value of 650 million euros with a coupon rate of 3.75%, according to a press release sent to the Budapest Business Journal . The bond transaction was closed with a substantial increase of more than one billion euros.
During the MVM Zrt. Bond auction, 6-year corporate bonds in the amount of 500 ml euros were issued with the assistance of OTP Bank as co-distributor. The auction closed on November 9, with investors outbidding the asking price more than 2.6 times. Maturing November 18, 2027, the fixed rate bonds (0.875%) were sold 110 bps above the benchmark yield with a coupon of 1.077%.
Including the Croatian government bond issue in February, OTP Bank participated in three successful international bond issuance transactions this year, all under professional guidance and coordination at the group level of OTP Global Markets, headquartered in Budapest.
â€œThe success of international transactions is due to the collaboration between our colleagues at the Croatian, Albanian and Budapest headquarters. The trinity of high level expertise, local market knowledge and successful cooperation at group level can become a dominant factor for further market orders in the future â€, commented AndrÃ¡s KazÃ¡r, Head of OTP Bank’s capital markets and securities origination services department.
â€œThe success of the international bond transactions completed this year also indicates that OTP Group, as a leading banking group in Central and Eastern Europe, has joined the ranks of the main players in the region’s bond market. This confirms that it was a good decision to integrate OTP Group’s capital market issuance business at group level and place it under the professional leadership of OTP Global Markets. The group-level vision combined with local expertise allows us to provide such a level of international cooperation that creates a solid basis for further advancements in the international bond market â€, added Attila BÃ¡nfi, Managing Director of OTP Global Markets .
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