I n a move recently approved by Hungarian regulatory officials, VCP Capital is on course to double its ownership stake in FHB Jelzálogbank Nyrt (FHB). VCP acquired nearly 20% of the Hungarian bank back in June of this year through a purchase from HSBC Bank plc; a deal that was originally struck in 2007. The government approval allows VCP Finanz Holding Vagyonkezelo Kft. to acquire a minimum 20% direct qualifying share but no more than 33%.
Other current FHB shareholders include Allianz, A64 Vagyonkezelo, Citibank, Clearstream, RZB Austria, and Silvermist Estate SA. VCP Capital is the largest FHB shareholder and believes the bank’s performance over the last several years warrants further investment.
FHB Bank (www.fhb.hu)
FHB Bank was established in April 1998 as the result of laws passed by the Hungarian government designed to fill a gap in mortgage lending. It is one of only three such institutions in the country and was principally owned by ÁPV Rt. (State Privatization and Holding Co.) until 2003, when the first IPO offering was made.
In the first year of operation FHB issued HUF 780 million in covered mortgage bonds (CMBs); today CMBs still provide the bulk of the bank’s investment capital. The maturity of the bonds is generally five or more years. In addition to CMBs, the bank also deals in unsecured bonds, Euro Mortgage Securities, and Euro Medium Term Notes.
Vienna Capital Partners (www.vcpag.com)
Vienna Capital Partners is a European independent investment and advisory company. It operates primarily in the nations of the European Union with special attention paid to the new member states. The company focuses on corporate financial advisory services and direct investments. Its investment strategy, open to all business sectors, seeks to invest in companies that are believed to be under valued but with high growth potential. Vienna Capital maintains offices in Vienna, Zagreb and Warsaw.
