- Largest order book so far for an OeKB USD benchmark in 5 years
- Price tightening by 3 basis points during book building process to price at SOFR Mid-Swaps +45 basis points
- Final orderbook included over 107 investors
Strong investor demand of over USD 4.8 billion for OeKB's 1st USD Global benchmark in 2024
On January 10, 2024, OeKB very successfully issued its first USD Global benchmark with a 5-year maturity and a volume of USD 1.5 bn. Despite the ongoing geopolitical turbulences, the primary market was very constructive for issuers of the highest quality and offered an ideal issuing window despite some competing supply in 5 years from other Sovereign/Supra/Agency issuers.
The issue was met with exceptionally strong demand from the international investor community. Following the formal opening of books the next morning, the order book stood at over USD 3 bn and continued to grow. Despite tightening the SOFR Mid Swap spread by 3 basis points and setting the spread at +45 bps, the final order book closed in excess of USD 4.8 bn. This was OeKB's largest 5-year USD order book up to date.
The coupon was set at 4.125% and the re-offer price at 99.946%. The five-year bond was priced at a spread to Treasuries of 18.5 basis points.
Facts and Figures
- Lead Managers: Citigroup Global Markets Europe AG, Deutsche Bank AG, J.P. Morgan SE and RBC Capital Markets.
- Distribution by investor type: Central banks and official institutions 55%, Bank treasuries 34%, Fund Managers/Pension funds/Insurance 10%, Other 1%
- Distribution by region: Europe 52%, Americas 20%, Asia 15%, Middle East/Africa 13%
- 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 to 6 billion euros annually.