- Very large order book with a total volume of over USD 3.4 billion
- Price tightening by 2 basis points during book building process to price at SOFR Mid-Swaps +42 basis points
- Final orderbook included over 100 investors
Strong investor demand for OeKB's 3rd USD Global benchmark in 2024
On August 28, OeKB very successfully issued its third and final USD Global benchmark of the year with a 5-year maturity and a volume of USD 1bn.
This was OeKB's second outing with a global benchmark in 5 years after issuing a 5-year global at the beginning of the year and a 3-year global in May.
Despite the ongoing geopolitical turbulences, the primary market was very constructive for issuers of the highest quality after the summer break. With no further supply expected in the 5-year maturity spectrum from other Sovereign/Supra/Agency issuers, the week of August 26 offered OeKB an ideal issuing window.
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 2.5 bn and continued to grow with high quality investors placing their orders into the book. Despite tightening the SOFR Mid Swap spread by 2 basis points and setting the spread at +42 bps, the final order book closed in excess of USD 3.4 bn. The five-year bond was priced at a spread to US Treasuries of 12.7 basis points. The coupon was set at 3.75% and the re-offer price at 99.896%.
Facts & Figures
- Lead Managers: BNP Paribas, Bank of America Securities Europe, Deutsche Bank AG and HSBC Bank plc.
- Distribution by investor type: Central banks and official institutions 49%, Bank treasuries 33%, Asset Managers 14% and Pension funds/Insurance 4%
- Distribution by region: Europe 49%, Americas 25%, Asia 16%, Middle East/Africa 10%
- 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 exportersOne 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 6 billion euros annually. |
