New public covered bond issue from UniCredit Bank Austria with a volume of EUR 500 million

The Public Covered Bond 2011/2016 – EUR 500 million, 2 7/8% from UniCredit Bank Austria AG was priced today with a term of 5 years and a coupon of 2 7/8 percent. The issue price was set at 99.647 percent. This results in a re-offer spread of 85 basis points over mid-swap.
Bank Austria took advantage of the conditions following the EU summit last weekend and again on Wednesday to bring out its third benchmark issue this year. The issue was placed on the market in just two hours, and was fixed at the lower end of the spread range.
The issue was easily oversubscribed with an order volume of almost EUR 600 million. In light of the very diverse order book – with more than 72 investors showing an interest in the issue – and its international distribution, this third benchmark issue of Bank Austria in 2011 can be considered a great success.

Thanks to its term, the transaction was met with strong interest from banks and central banks accounting for 34 percent and 27 percent respectively, but also funds at 29 percent and insurance companies making up 9 percent. The issue enjoyed solid international demand as well: it was snapped up by investors from more than 12 different countries, whereby in addition to investors from Austria (40 percent) and Germany (30 percent) there was strong demand first and foremost from Scandinavian countries making up 15 percent, from the Benelux countries at 7 percent and Asia at 5 percent (percentages based on order allocation).

The transaction was commissioned by Bank Austria and managed by Danske Bank, DZ-Bank, Erste Group Bank, Nord/LB and UniCredit Bank as the joint book-runners. The issue will be listed on the second regulated market of the Vienna Stock Exchange.

The 2011/2016 public covered bond from UniCredit Bank Austria was given an Aaa rating by Moody’s and therefore fulfils the highest security criteria. All of the cover comes from Austria (99 percent) or from Europe with a guarantee provided by the Republic of Austria (1 percent). The sum of all claims in the cover pool currently totals just over EUR 7 billion. Including the current issue the volume of public covered bonds issued amounts to EUR 5.26 billion.

The funds raised by this issue will be used to refinance infrastructure projects under market conditions or projects of public interest carried out by Austrian public corporations. The transactions refinanced in this way can then be used again as cover for public covered bonds.

Enquiries: Bank Austria Press Office Austria
 Julia Wegenstein, Tel. +43 (0) 50505 - 52854
 E-Mail: julia.wegenstein@unicreditgroup.at

Details about the issue:

Public Covered Bond 2011/2016 – EUR 500 million, 2 7/8% from UniCredit Bank Austria AG

ISIN: AT000B049119
Issuer: UniCredit Bank Austria AG
Lead Manager: Danske Bank A/S
 DZ-Bank AG
  Erste Group Bank AG
 Norddeutsche Landesbank Girozentrale
 UniCredit Bank AG (technical lead)
Documentation:   Public covered bond
Issue rating: Aaa from Moody’s
Status:  senior secured, pari passu
Sale, pricing: 28 October 2011
Volume: EUR 500 million
Denomination: EUR 100,000
Term:  5 years (value date: 4 November 2011, maturity: 4 November 2016)
Coupon: 2 7/8 percent
Issue price: 99.647 percent
Repayment:   4 November 2016 at 100 percent
Early redemption:  not possible
Stock exchange listing: Vienna Stock Exchange, second regulated market
Applicable law:  Austrian law

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