- OeKB issues 3rd USD gobal transaction this year
- With over USD 2 bn the order book was 2 times oversubscribed
- Final orderbook included 55 investors from 16 countries
- Spread tightening by 3 basis points during book building to price at SOFR Mid-Swaps +37 basis points
Oversubscribed orderbook of the highest quality enables a volume of USD 1 bn
On October 25, 2022, OeKB very successfully issued a 3-year USD Global Bond with a volume of USD 1bn. Despite the ongoing uncertainty regarding high inflation and further rate hikes by the FED, the market backdrop was stable and offered an ideal issuing window.
From the outset the issue was met with extremely strong demand by the international investor community and the order book grew to USD 1.4bn overnight. Following the formal opening of books the next morning, the order book continued to grow to USD 1.8 bn. Despite tightening the SOFR (Secured Overnight Financing Rate) Mid Swap spread by 3 bps and setting the spread at +37 bps, the final order book closed in excess of USD 2 bn, so was 2 times oversubscribed and of the highest quality.
The three-year bond was priced at a spread to Treasuries of 22.1 basis points.
Facts and Figures
- Coupon: 4.625%
- Re-offer price: 99.989%
- Lead Managers: BofA Securities, Deutsche Bank, RBC Capital Markets und TD Securities
- Distribution by investor type: Bank treasuries/banks 47%, Central banks and official institutions 38% and fund managers/pension funds/insurance 15%
- Distribution by region: EMEA 47%, Americas 42%, Asia 11%
- 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 4.5 billion euros annually.