10.09.2021
  • With an order book in excess of USD 3.6bn this was one of OeKB´s largest order books to date.
  • Final orderbook included 60 investors from 25 countries.
  • OeKB as first agency to market the fixed rate bond versus “risk free rate” SOFR Mid-Swaps
  • Spread tightening by 3 basis points during the book building process starting at SOFR Mid-Swaps +19 basis points to price at SOFR Mid-Swaps +16 basis points
  • Deal size USD 1.75bn

High-quality orderbook enables issuance of USD 1.75bn at SOFR Mid-Swaps +16 basis points

On September 8, OeKB successfully issued a USD Global Bond with a volume of USD 1.75bn. Despite strong activity in the SSA sector after the summer months, this week offered an ideal issuance window. With the strong global participation from central banks/official institutions, bank treasuries and fund managers the order book grew to a volume in excess of USD 3.6bn. At this point the spread vs SOFR Mid-Swaps was tightened by three basis points to Mid-Swaps +16 which allowed OKB to price a USD 1.75bn transaction inside its secondary market level. The bond was priced at a spread of 9.8 basis points over US Treasuries.

OeKB is the first agency in the SSA sector to market and price a fixed rate bond using the “risk free rate” SOFR Mid-swaps as a reference as the market transitions away from LIBOR by the end of 2021.

Facts and Figures

  • Coupon:  0.5%
  • Re-offer price: 99.884%.
  • Lead Managers: Barclays, HSBC, JP Morgan und RBC
  • Distribution by investor type: Central banks and official institutions 62%, bank treasuries 21% and fund managers 15%
  • 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.

Attractive conditions for Austria's exporters

One of OeKB’s main tasks is to support exporters with loans at attractive financing conditions in cooperation with their banks. OeKB finances these loans by placing bonds with international investors on the capital market. 

All OeKB bonds are guaranteed by the Republic of Austria. This enables OeKB to obtain favourable conditions on the capital market and to pass these on to the exporters. OeKB's long-term financing needs amount to around 5 billion euros annually.

 

All OeKB bonds at a glace

Please find a comprehensive overview of all OeKB bonds here
OeKB Bonds Overview