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22.02.2023

 

  • Excellent investor reception with book 3-times oversubscribed
  • One of the largest OeKB orderbooks ever for a USD 5 year benchmark
  • Price tightening by 3 basis points during book building process to price at SOFR Mid-Swaps +36 basis points 
  • Final orderbook included over 90 investors.

Strong investor demand for OeKB´s 2nd USD Global benchmark in 2023

On February 22, 2023, OeKB very successfully issued a 5-year USD Global Bond with a volume of USD 1bn. Despite the ongoing macroeconomic uncertainty, the primary market was very constructive and offered an ideal issuing window after the US holiday on Monday.

The issue was met with extremely strong demand by the international investor community and the order book grew rapidly. Following the formal opening of books the next morning, the order book stood at USD 1.5 bn and continued to grow to over USD 3.1 bn during the course of the morning.

Despite tightening of the price by 3 bps and setting the spread at SOFR Mid Swap +36 bps, the final order book closed in excess of USD 3.1 bn, so was 3-times oversubscribed and of the highest quality. This was the tightest priced 5-year USD benchmark transaction in 2023 YTD in the supras and agencies segment.

The coupon was set at 4.25% and the re-offer price at 99.831%. The three-year bond was priced at a spread to Treasuries of 17.2 basis points.

Lead Managers were Bank of America Securities, Deutsche Bank AG, J.P. Morgan and RBC Capital Markets.
 

Facts and Figures

  • Distribution by investor type: Central banks and official institutions 57%, Bank treasuries 30%, Fund Managers/Pension funds/Insurance 13%
  • Distribution by region: Europe 31%, Asia 31%, Americas 29%, Middle East/Africa 9%
  • 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 to 5 billion euros annually.

 

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