• 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.

All OeKB Bonds at a glance

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