- OeKB´s issues its first benchmark deal in 2024
- Largest OeKB GBP Orderbook of the highest quality in excess of GBP 840 million
- Strong placement of over 50% with UK accounts
Strong investor demand for OeKB´s first deal of the year
On January 8, 2024, OeKB successfully issued its first deal of the year with a GBP benchmark with a volume of GBP 500 million which is OeKB´s largest GBP benchmark deal up to date. With strong demand of over GBP 840 million from 27 investors, OeKB achieved its largest GBP orderbook ever. This deal was marketed and priced for the first time with a spread versus the Mid Swap level, which has been the norm in other markets for a long time already. The transaction was priced at Sonia Mid Swaps +32 basis points which is equivalent to a Gilt spread of +34,9 bps.
The bulk of the transaction with 54% was placed with institutional investors in the UK, a further portion of 22% went to accounts in Asia, 11% to both Europe ex UK and the Middle East/Africa and 2% to the Americas.
43% of the bonds were allocated to central banks/official institutions while bank treasuries took up 35% and fund managers/insurance/other 22% of the transaction.
The coupon was set at 4.125% and the re-offer price at 99.956%.
Lead Managers were J.P. Morgan, RBC Capital Markets and TD Securities.
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 5 to 6 billion euros annually.