- Substantial participation by international Central Banks and official institutions
- Final orderbook included 56 investors from 19 countries
- Spread tightening by 2 basis points during the book building process to price at Mid-Swaps +25 basis points
High-quality orderbook enables a volume of USD 1 bn at a Treasury spread of 12.4 basis points.
On May 17, 2022, OKB successfully issued a USD Global Bond with a volume of USD 1bn. Despite the difficult market backdrop caused by concerns about high inflation and uncertainty regarding the FED monetary policy response, the market remained stable during the chosen window. The three-year bond was priced at a spread to Treasuries of just 12.4 basis points.
From the outset the issuance was met with strong demand by the international investor community, which let IOIs grow to USD 1.4bn overnight and allowed the books to open on May 17 one basis point inside IPTs at MS+26 basis points. On the back of continuous demand, especially from central bank and official institutions the spread was further tightened and finally set at MS +25, with a book just shy of USD 2bn.
Facts and Figures
- Coupon: 2.875%
- Re-offer price: 99.815%
- Lead Managers: Bank of America, Deutsche Bank, Goldman Sachs and RBC
- Distribution by investor type: Central banks and official institutions 76%, bank treasuries 14% and asset managers 8%, pension funds and insurance 1% and others 1%
- 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.