Chicago, July 5 – OTP Bank NyRt priced its €400 million inaugural senior preferred offering (BBB/Scope: BBB+) on Tuesday, according to information from a market source.
The 5˝% notes with a three-year tenor were sold at par, or for a spread of 426.5 basis points over mid-swaps.
There are two years of call protection. The notes can be optionally redeemed on July 13, 2024.
If the notes are not redeemed early, the coupon will reset to Euribor plus 426.5 bps.
Early talk after investor meetings was for a coupon in the context of 5% to 5˝%. Official talk was in the 5˝% area. The size was expected to come between €300 million and €500 million.
BNP Paribas, Erste Group, ING and OTP Bank were joint lead managers for the Regulation S sale.
The last report on the order book was that it was at €475 million with a substantial order from a supranational international financial institution.
Proceeds will be used to finance and/or refinance a portfolio of loans, credits and investments as described in the company’s sustainable finance framework.
OTP is the largest universal banking services provider in Hungary.
| Issuer: | OTP Bank NyRt
|
| Amount: | €400 million
|
| Issue: | Green bonds
|
| Maturity: | July 13, 2025
|
| Bookrunners: | BNP Paribas, Erste Group, ING and OTP Bank
|
| Sustainability assessor: | ISS ESG
|
| Coupon: | 5˝% initial rate; resets quarterly in final year if not redeemed to Euribor plus 426.5 bps
|
| Price: | Par
|
| Yield: | 5˝%
|
| Spread: | Mid-swaps plus 426.5 bps
|
| Call features: | July 13, 2024
|
| Trade date: | July 5
|
| Settlement date: | July 13
|
| Ratings: | S&P: BBB
|
| Scope: BBB+
|
| Distribution: | Regulation S
|
| Price talk: | 5˝% area
|
| ISIN: | XS2499691330
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