OREANDA-NEWS. On 02 March 2009 OTP Bank (Ukraine) announced about the planned charter fund increase by UAH 800mn or 39% to UAH 2.1bn. With this aim the bank will issue 64.563 thousand shares at par of UAH 12,391. The decision is to be taken at the bank's AGM on 8 April 2009.

Millennium Capital sees the news to be POSITIVE for OTP Bank (Ukraine), since the funds provided are expected to cover the expenditures for the problem credit reserve increase that may continue in 2Q2009. Millennium Capital estimates that in 1H2009 OTP will need around UAH 2bn to increase its reserves on mortgage loans, which took 40% share in OTP’s credit portfolio as of 01.01.09. In 1Q2009 the reserve increase may be funded via the subordinated loan from OTP Bank (Hungary), amounting to USD 50mn, while funds from charter fund increase will cover additional expenses.

Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of the major investment banking institutions.