- Substantial participation by international Central Banks and Bank Treasuries
- Final orderbook included 46 investors from 23 countries
- Spread tightening by 3 basis points during the book building process to price at Mid-Swaps +5 basis points
- Issuance volume of USD 1.5bn
High-quality orderbook enables a volume of USD 1.5bn at Mid-Swaps +5 basis points
On January 26, 2021 OKB successfully issued a USD Global Bond with a volume of USD 1.5bn. Despite strong activity in the SSA (sovereigns, supranationals, agencies) sector since the start of the year, this week offered an ideal issuance opportunity. With the strong global participation from central banks/official institutions, bank treasuries and asset managers the order book grew to a volume in excess of USD 3bn. At this point the spread vs Mid-Swaps was tightened by three basis points to Mid-Swaps +5 which allowed OKB to price a USD 1.5bn transaction inside its secondary market level. The bond was priced at a spread of around 15 basis points over US Treasuries.
Facts & Figures
- Coupon: 0.5%
- Re-offer price: 99.690%
- Lead Managers: Bank of America, Citigroup, Deutsche Bank, Goldman Sachs
- Distribution by investor type: central banks and official institutions 54% | bank treasuries 33% | asset managers 13%
- 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.