By Rebecca Melvin
New York, July 8 – Hungary’s OTP Bank NyRt priced on Monday €500 million of 2 7/8% 10-year fixed-rate reset notes (expected rating: Ba1) at 99.738%, to yield 2.932%, or a yield spread of mid-swaps plus 320 basis points, according to a market source.
The tier 2 compliant notes are callable after five years and the interest rate will be reset after five years to the sum of the then prevailing five-year mid-swap rate plus a margin. It is a one-time reset with no step-up.
Pricing was fixed tight to early guidance of mid-swaps plus 325 bps to 337.5 bps following initial price talk for a spread of 350 bps to 375 bps over mid-swaps.
Order books were in excess of €1 billion when terms were set at the tight end of guidance.
BNP Paribas, Citigroup and OTP Bank were bookrunners for the Regulation S notes.
OTP is the largest commercial lender in Hungary.
| Issuer: | OTP Bank NyRt
|
| Amount: | €500 million
|
| Issue: | Fixed-rate reset callable subordinated notes
|
| Maturity: | July 15, 2024
|
| Bookrunners: | BNP Paribas, Citigroup and OTP Bank
|
| Coupon: | 2 7/8%
|
| Issue price: | 99.738
|
| Yield: | 2.932%
|
| Spread: | Mid-swaps plus 320 bps
|
| Call: | After five years, on July 15, 2024
|
| Talk: | Guidance of mid-swaps plus 325 bps to 337.5 bps and IPT of 350 to 375 bps
|
| Pricing date: | July 8
|
| Settlement date: | July 15
|
| Distribution: | Regulation S
|
| Expected rating: | Moody’s: Ba1
|
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