Hungary’s OTP Bank signed a purchase and sale contract on the privatization of Ipoteka Bank in Uzbekistan this Monday.
According to the contract, OTP Bank will purchase 100% of the shares held by the Ministry of Finance of the Republic of Uzbekistan (nearly 97% shareholding) in two steps: 75% of the shares now and the remaining 25% three years after the financial closure of the first leg of the transaction.
OTP Bank and the International Finance Corporation (IFC) have agreed to cooperate on Ipoteka Bank in the future. IFC has been providing financing and transformation support to Ipoteka Bank for several years and IFC confirmed it is committed to continuing its support and cooperating with OTP Bank, the new majority shareholder.
The transaction is the first step in the privatization process of the local, predominantly state-owned banking sector.
Ipoteka Bank is the 5th largest bank in Uzbekistan with a total asset-based market share of 8.5% and it is the market leader in mortgage lending with around 30% market share.
The financial closure of the transaction is subject to regulatory approvals and expected in the first half of 2023.


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