MKB to fund Romexterra's growth through sale of bonds

MKB, the second Hungarian bank to enter the Romanian market, intends to fund Romexterra Bank’s development plans through syndicated loans and bond issues denominated in RON and euros, according to the Budapest Business Journal, which quotes a statement made by the bank. A member of the German group Bayerische Landesbank, MKB has already announced the acquisition of at least 51% in Romexterra Bank’s shares through a capital increase, and by taking out a subordinated credit from the parent bank. MKB plans to become the strategic owner of the bank by autumn, ultimately targeting 100% of Romexterra’s capital. Meanwhile, the transaction has to be approved by the central banks and the competition authorities in Romania and Hungary. MKB’s ambitious goals include increasing the existing network from 43 to 150 branches by 2015, and expanding the client base to 700,000 on the retail segment as well as to 70,000 on the corporate segment, including 40,000 SMEs. MKB believes it can get Austrian, German and Hungarian multinationals to become part of Romexterra’s portfolio.