The highlight of our Hiventures - Portfolio Corporate Capital Financing 2021 conference was a panel discussion between Levente Tompa Sipos, CEO of MFB Group and László Wolf, Deputy CEO of OTP Bank, where they discussed the importance of equity financing.
Levente Sipos-Tompa, CEO of MFB Group, said that the domestic corporate sector is growing dynamically. Last year alone, the bank signed 1,700 billion forints of new product contracts, and if we look at the group as a whole, the increase is 2,300 billion forints.
László Wolf, deputy CEO of OTP Bank, said that the market is expected to grow by 151TTp3T in loans this year, and the bank's plans are for a growth rate of 12-15%. He pointed out that in the case of development loans, labour shortages are a growing problem for investments. He specifically mentioned the expected high demand for loans in the agriculture sector, where he said loan demand could reach 700 billion in the next one year.
Levente Sipos-Tompa used two figures to illustrate the importance of equity financing: the bank's equity financing accounted for HUF 700 billion of the HUF 1,700 billion increase in financing.
We have crossed a threshold where we are not only talking about a development bank, but also an investment bank,“ said the MFB CEO. Growth in the capital arm could be even more dynamic than in the credit arm, because they can be used to finance self-financing. As for their own activities, he stressed that they give patient money, which is also used to educate businesses. ”State actors have opened up a money tap that was not available before," he said.
László Wolf pointed out in one of his answers that there is increasing competition among capital investors for good investments. According to calculations, €15 billion is available for equity financing solutions in Hungary, which he said is a huge amount. “I would argue with the claim that it is difficult to get capital in Hungary today. Investors are competing, which also reduces the expected returns,” he said. The OTP Bank deputy CEO added that the presence of state funds is important to normalise expected returns.
“The cooperation between capital investment and commercial banks is very important and everyone has a role to play in this process,” said Wolf.
Following the executive panel discussion, Gábor Pető, Managing Director of Moore Hungary, gave a presentation on the latest developments in the domestic and international corporate debt and bond markets.
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Moore Global's services will be directly available in the domestic market from March 2021. Moore Hungary has been offering a full range of consulting services in the fields of business, financial, tax, accounting and auditing with a team of almost 100 experts since its inception.
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