We are proud that OTP Bank Hungary, the owner of OTP banka in Slovenia, successfully completed the Tier2 bond issuance on international capital markets. The successful issuance and multiple oversubscription reaffirm the confidence of investors and the stability of OTP Bank’s operations. This also further proves that OTP banka has a strategic owner that will continue to support our focus on development, technological advancement, and best-in-class services that clients expect locally in Slovenia.
Furthermore, as a strong and stable bank, we will continue to support the development of Slovenian entrepreneurship and economy.
Read below the full press release of OTP Bank.
Favourable issuance spread and multiple oversubscription – The market seems to have confidence in the stable operation of OTP Bank.
Last week, OTP Bank issued a total of USD 750 million of subordinated capital (Tier2), which was subscribed by investors at an all-time-low spread.
OTP Bank recently completed its largest bond issuance in recent years: the credit institution issued subordinated liabilities in the amount of USD 750 million. The bonds with 10.5 years maturity, redeemable any time during the 6-month period prior to 5.5 years, were issued at a spread of just 286 basis points above the US Treasury benchmark, significantly narrower than that of the comparable issuance in 2023.
“The favourable spread and the multiple oversubscription seen on our latest bond issuance confirm that OTP Bank’s safe and sound operation is backed by strong investor confidence on the market" said Attila Bánfi, Managing Director of OTP Global Markets.
The bonds of OTP Bank were distributed among 170 investors from around the world. The vast majority (84%) were fund managers, but banks and international financial institutions were also involved in the subscription.
“It was the largest order book ever in OTP Bank’s history, with a total of USD 2.7 billion of orders received for our bonds, which is nearly a three and a half times oversubscription. The allocated amount of USD 750 million was also a record, making it the largest issuance in recent years” added the Managing Director.
In terms of the geographical distribution of investors, the UK and the US accounted for the largest share of subscribers, while the Central and Eastern European region represented almost 15% of the allocations. Besides OTP Global Markets, the joint lead managers of the transaction were BNP Paribas, Goldman Sachs, JP Morgan, and Morgan Stanley.
“In recent years, we have completed a total of ten public issuances, as well as several private and bilateral transactions, making OTP Bank the largest independent regional bond issuer in terms of total issued amount” said Sándor Pataki, Head of Investor Relations and Capital Markets Operations at OTP Bank Hungary.
This year, OTP Bank Hungary is planning to issue another benchmark bond, the terms of which will be communicated to market participants in due course by the credit institution.
Read the original press release here.
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