- Strong global participation from 60 institutional investors
- Bond was placed with Central Banks, Official Institutions, Bank Treasuries and Asset Managers
- Bond was priced at a spread of around 19bp over US Treasuries
OeKB found an ideal issuance opportunity free of competing supply
On September 10, 2020 OeKB successfully issued a USD Global Bond with a volume of USD 1.5bn. Despite many other issuers expected to fulfill their USD funding programs in the first weeks of September, OeKB found an ideal issuance opportunity free of competing supply. The five-year bond was priced at a spread of around 19bp over US Treasuries. The coupon was set at 0.375% and the re-offer price at 99.541%. During the book building process OeKB was able to tighten-in the pricing by two Basis Points and ended up inside its secondary market level.
The strong global participation from 60 institutional investors allowed the order book to grow to almost USD 3bn, so twice oversubscribed. Investor demand for the OeKB credit was as strong for this issue as for the benchmark done at the beginning of the year before the outbreak of the Corona crisis. The bond was placed with Central Banks, Official Institutions, Bank Treasuries and Asset Managers. The issue carries an unconditional and explicit guarantee of the Republic of Austria and is rated Aa1/AA+ by Moody’s and Standard Poor’s respectively. Lead Managers were Citi, Barclays, HSBC and Royal Bank of Canada.
Distribution by investor type:
Central banks and official institutions 50%, bank treasuries 34%, asset managers and pension funds 16%