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  Funding Activities 

Issues in the money and capital markets

OeKB operates its funding activities in the international and domestic capital markets through

  • the issuance of public bonds,
  • tailor-made private placements,
  • structured MTNs
  • short-term products and
  • taking up loans.

 

OeKB's multi-currency liability portfolio currently has a notional amount of 30 bn Euro (approx. USD 40 bn). Roughly three-quarters of OeKB's portfolio consists of long-term financing. The long-term funding volume amounts to 3 to 4 bn Euro (approx. 4 to 5 bn USD) per year.

Guarantee and Rating

OeKB's debt issuance is guaranteed by the Republic of Austria and its bond issues are Aa1/AA+ rated by Moody's and Standard & Poor's (short-term debt: P-1 and A-1+ respectively). OeKB also has a Aaa long-term Bank Deposit Rating from Moody's. Furthermore, OeKB's unguaranteed FCD program is rated P-1/A-1+ by the rating agencies. 

Pricing and Portfoliomanagement

The pricing of single transactions as well as strategic portfolio allocation regarding duration and currency structure are done with the use of state of the art software tools and optimisation approaches. Efficient medium- to long-term cost and risk management strategies are implemented to manage the asset and liability portfolio. Accordingly, multi-period Monte Carlo simulation techniques and Markowitz principles are applied.

Derivatives/ Risk Policy

OeKB utilises derivatives - mainly swaps - to enhance funding levels and for both hedging and portfolio structuring purposes.

 

OeKB has strict internal guidelines concerning the credit quality of its counterparties (Minimum-Rating) and the monitoring of the current exposure (ISDA Master Agreements and the use of credit enhancements -Collateral Agreements).

 

In addition, OeKB's observation period regarding the future potential market and credit exposure associated with its derivatives goes beyond the standard 10 day horizon.

OeKB's issues are used exclusively in the export financing system. To date OeKB employs integrated Monte Carlo simulation software for the long-term valuation of market and credit risks of its portfolio.

 

OeKB is exempt from the Capital Requirements Directive and the Capital  Requirements Regulation (CRD IV) and, therefore, the regulations regarding the minimum level of own funds (minimum capital requirements), liquidity and large exposures do not apply to OeKB (Article 2 of Directive 2013/36/EU on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms).



Contact

Investor Relations Service Center

Tel. +43 1 53127-2457

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