- Large order book of highest quality with a total volume in excess of USD 4.1 billion
- Price tightening by 3 basis points during book building process to price at SOFR Mid-Swaps +34 basis points
- At 7.45 basis points - tightest spread versus US Treasuries ever achieved by OeKB
- Final orderbook included over 70 investors.
Strong investor demand
On May 21, 2025, OeKB very successfully issued its second USD global benchmark in 2025 with a 3-year maturity after having issued a 5-year USD 1.25 bn transaction at the beginning of the year. Despite the ongoing geopolitical turbulences, the primary market for issuers of the highest quality was very constructive.
The week of May 19th seemed like the ideal issuing window for OeKB, especially since various Sovereign/Supra/Agency issuers were looking to issue in the 5-year part of the curve and no further issues with a 3-year maturity were expected during that week.
The issue was met with exceptionally strong demand from the high-quality 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 with high quality investors placing their orders. Despite tightening the SOFR Mid-Swap spread by 3 basis points and setting the spread at +34 bps, the final order book closed in excess of USD 4.1 bn.
The three-year bond was priced at a spread versus US Treasuries of 7,45 basis points, the tightest spread ever achieved by OeKB.
Facts & Figures
- Lead Managers: Bank of America Securities Europe SA, Deutsche Bank AG, Goldman Sachs Bank Europe SE, HSBC Bank plc
- Distribution by investor type: Central banks and Official Institutions 59%, Banks & Bank Treasuries 27%, Asset Managers 8% und Insurance & Pension, Corporates and Others 6%.
- Distribution by region: Americas 37%, Europe 36%, Asia 17%, 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. |
