- Final orderbook included 110 investors from 18 countries
- 53% placed with SRI (socially responsible investments) focused investors
- 20% placement with Austrian investors
- Spread tightening by 3 basis points during the book building process
EUR 500 million for sustainable projects
On July 6, OeKB successfully issued its third Sustainability Bond with a volume EUR 500 million and a maturity of 5 years after presenting the new issue in a global investor call the previous day. The Bond was issued under OeKB' s updated Sustainable Financing Framework dated March 22, 2022. Despite the volatile markets, the orderbook was 8x oversubscribed after only a few hours - a new record for an OeKB orderbook. The new issue generated interest from 110 investors. 53% of the bond was placed with SRI focused investors.
With the strong participation from bank treasuries, asset managers, central banks/official institutions and insurance, the order book grew to a volume in excess of EUR 2.8bn, at which point the Mid-Swaps level of -6 basis points was tightened by three basis points to Mid-Swaps -9 basis points. Despite the spread tightening, investors did not withdraw their orders out of the book and the orderbook continued to grow to reach a volume of almost EUR 4 bn. The bond was priced at a spread of 47.8 basis points over the RAGB (Republic of Austria Government Bond) curve.
Financing of green and social projects
Around 61% of the net proceeds of the Sustainability Bond will be used to refinance green projects and 39% for social projects. The green projects include pollution prevention and control (37%), energy efficiency (16%), renewable energy (6%) and green buildings (3%). Social projects comprise of access to essential services (32%) and basic infrastructure (7%).
Facts and Figures
- Coupon: 1.5%
- Re-offer price: 99.924%
- Lead Managers: BNP Paribas, HSBC, RBI und UniCredit
- Distribution by investor type: Bank treasuries 49%, Asset Managers 30%, Central banks and official institutions 15%, insurance 6%
- The issue carries an unconditional and explicit guarantee of the Republic of Austria and is rated Aa1 (stable)/AA+ (positive) by Moody’s and Standard Poor’s respectively.
