Ipoteka-Bank, a leading financial institution in Uzbekistan, recently announced the receipt of a $70 mn additional capitalization from its main investor, OTP Bank. This strategic move has seen OTP Bank’s share in the authorized capital of Ipoteka-Bank increase from 75% to 79.6%, as per the press service of Ipoteka Bank.
Investment details
The capitalization involved the issuance of 844.63bn common shares, which were entirely distributed to OTP Bank by the sales contract between the two parties. This has led to an increase of 28.3% in the bank’s authorized capital, reaching a total of UZS 3.83 trillion ($308.7 mn).
Impact on financial market
This significant investment is expected to strengthen Ipoteka-Bank’s position in the Uzbek financial services market. It is worth noting that Ipoteka-Bank is the 5th largest bank in Uzbekistan, with a total asset-based market share of 8.5%. It also leads the market in mortgage lending with around 30% market share.
Look back
Future prospects
The transaction is a significant step in the privatization process of the local, predominantly state-owned banking sector. With OTP Bank becoming the majority shareholder of Ipoteka-Bank, it’s anticipated that this will bring about positive changes in the financial landscape of Uzbekistan.
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