Miba bond enjoys massive demand
- EUR 75 million oversubscribed almost four times within an hour, dominated by private investors from Austria due to low denomination and attractive interest rate
Miba AG's first bond sold like hot cakes on the Austrian market. Just one hour after the order books were opened, this corporate bond with a volume of EUR 75 million was subscribed several times over. 80 percent of the total order volume amounting to more than EUR 260 million came from private investors. Looking at the geographical spread, Austrian investors accounted for almost all of the demand, and only one percent of the orders came from abroad. The low denomination of EUR 500 and the attractive interest rate of 4.5 percent over a period of seven years ensured the bond was a very appealing investment for private investors in Austria. The price of the bond was set at 101.423 percent of the issue price.
Dieter Hengl, Bank Austria Director for Corporate & Investment Banking: "The time was right and the conditions were attractive – but the massive demand for the Miba bond still took us all by surprise. This is only the second corporate bond from an Austrian company this year, and in view of this extremely encouraging reaction from the market we assume that a few other medium and large-sized companies will follow Miba's example. At any rate I am delighted that we were able to support Miba with their first and highly successful bond issue as Joint Lead Manager."
Miba AG is an international corporation that produces sophisticated and high-performance drive components. It employs around 3,900 staff, more than half of whom work in Austrian plants. A listed company it generated revenues of EUR 437.2 million in the 2010/11 financial year, with earnings before interest and taxes (EBIT) of EUR 54.5 million.
Enquiries: Bank Austria Press Office Austria
Julia Wegenstein, Tel. +43 (0) 50505 - 52854
Details about the issue:
Issuer: Miba AG
Nominal value: EUR 75,000,000
Denomination: EUR 500
Coupon: 4.5 percent p.a. on nominal amount
Term: 7 years, payable at term
Issue price: 101.423 percent
Value date: 27 February 2012
Repayment: 27 February 2019 at 100 percent of the nominal value
Stock exchange listing: Vienna, Stock Exchange, Second Regulated Market
Applicable law: Austrian law
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