- Second largest orderbook ever in a five-year maturity
- Orderbook with the highest quality and a total volume of over USD 4 billion
- Price tightening by 3 basis points during book building process to price at SOFR Mid-Swaps +43 basis points
- Final orderbook included around 70 investors
Strong investor demand
On September 3, 2025, OeKB very successfully issued its third USD global benchmark of the year with a five-year maturity and a volume of USD 1.5 bn. Despite the ongoing geopolitical turbulences, the primary market for issuers of the highest quality was very constructive since the end of the summer break. After an array of Sovereign/Supra/Agency issuers accessed the market in the 5-year maturity spectrum in the second half of August, the first week of September offered OeKB an ideal issuing window.
The issue was met with exceptionally strong demand from the high-quality international investor community. At its formal opening the next morning, the order book stood at over USD 2.7 bn which allowed for the price guidance to be revised by two basis points to SOFR Mid Swap +44 basis points. Following this tightening, the book continued to grow further to USD 3.8 bn with high quality investors placing their orders into the book.
As a result, the price was tightened by a further basis point and was set at SOFR Mid Swap +43 basis points. The orderbook was eventually closed at a level of more than USD 4 bn and the transaction was priced with a volume of USD 1.5 bn.
The spread of only 8.5 basis points to US government bonds is the lowest ever achieved by OeKB on a five-year bond.
Facts & Figures
- Lead Managers: Barclays Bank Ireland PLC, BNP Paribas, JP Morgan SE, TD Global Finance unlimited
- The coupon was set at 3.75% and the re-offer price at 99.914%.
- Distribution by investor type: Central banks und Official Institutions 53%, Banks & Bank Treasuries 40%, Asset Managers 5% and Other 2%
- Distribution by region: Asia 30%, Americas 29%, Europe 28%, 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 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. |
