- Largest OeKB GBP Benchmark transaction ever with GBP 500 million
- Largest OeKB GBP Orderbook ever with over GBP 700 million
- Gilt spread tightening during the bookbuilding process by 2 basis points to Gilts +30 basis points
- Strong placement with UK accounts
High-quality orderbook leads OeKB to issue its largest ever GBP benchmark with a volume of GBP 500 million
With improving funding levels achievable in the GBP market in the Dec 2025 maturity, OeKB took advantage of the clear window of issuance this week.
On June 8, 2021 OeKB successfully issued its most successful GBP benchmark with the largest volume of GBP 500 million ever. With strong demand of over GBP 700 million, OeKB achieved its largest GBP orderbook so far. Due to the size of the order book, OeKB was able to tighten the pricing by 2 basis points from Gilts +32bp to Gilts +30bp. Despite the tighter price, investors kept their orders in the book and OeKB was able to print double the transaction size than initially anticipated.
The bulk of the transaction with over 50% was placed with institutional investors in the UK, a further portion of 25% went to accounts in Asia.
Facts & Figures
- Coupon: 0.5%
- Re-offer price: 99.851%
- Lead Managers: Barclays Bank Ireland, Deutsche Bank and RBC Europe Limited
- Distribution by investor type: bank treasuries 39%/central banks and official institutions 33%/fund managers, pension funds, insurance 28%
- 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.