5 January 2005 – LAWFUEL – Best for law news – Allen & Overy has adv…

5 January 2005 – LAWFUEL – Best for law news – Allen & Overy has advised Deutsche Bank and OTP Bank Ltd. as Joint Arrangers and the other Dealers as to English and Hungarian law on the second-ever Euro Covered Mortgage Bond Programme in Hungary. The e1,000,000,000 Euro Covered Mortgage Bond Programme was established by OTP Mortgage Bank Ltd. (OTP Jelzálogbank Részvénytársaság) and provides for the issue of Hungarian Mortgage Bonds (Jelzáloglevelek) in dematerialised form to be cleared and settled through KELER (the local clearing and settlement system) and, via a settlement bridge, Clearstream, Luxembourg. Hungarian Mortgage Bonds (Jelzáloglevelek) are the Hungarian equivalent of German Pfandbriefe.

The Programme is listed on the Luxembourg Stock Exchange. Allen & Overy also
advised Deutsche Bank and OTP Bank Ltd. as Joint Lead Managers and the other
Managers of the debut issue under the programme of e200,000,000 4.00 per
cent. Mortgage Bonds of 2004/2014.

The Allen & Overy team was led by Frankfurt-based partner Philip Smith,
assisted by Jonathan Palmer. Hungarian law advice (including tax advice) was
provided by partner Zoltán Lengyel of Allen & Overy Budapest, assisted by
Ágnes Bódi.

The instruction on the programme establishment follows on from the Allen &
Overy team’s groundbreaking work on the establishment of the first-ever
Hungarian Covered Mortgage Bond Programme for FHB Land Credit and Mortgage
Bank Ltd. in November 2003.

Philip Smith comments:
“We are very pleased to have been able to work alongside Deutsche Bank and
the other Dealers on the establishment of this programme and to be able to
assist OTP Mortgage Bank and the OTP group with broadening their
international financing opportunities and investor base. Our involvement is
further evidence of our ability to marry high level local law technical
expertise with our strength in the sphere of international finance.”

Zoltán Lengyel comments:
“The Hungarian law governed Euro mortgage bond has proved to be a popular
product with both issuers and investors and we are delighted to be involved
with the internationalisation of this previously domestic covered bond.”

Berecz & Andrékó Linklaters and Linklaters acted for OTP Mortgage Bank Ltd.

For further information, please contact Philip Smith
([email protected]) in Frankfurt on +49 69 2648 5754 or Zoltán
Lengyel ([email protected]) in Budapest on +36 1 429 6033 or
Caroline Livesey ([email protected]) in London on +44 (0)20
7330 4380.

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