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19.04.2012

KTM bond very popular among Austrian private investors

  • EUR 85 million more than double oversubscribed within two hours; low denomination and attractive interest rate lead to strong demand among private investors

KTM Power Sports AG issued its first bond for private investors, which generated strong demand on the domestic market. Just two hours after the order books opened, the corporate bond with a volume of EUR 85 million was several-times oversubscribed. The low denomination of EUR 500 and the attractive interest rate of 4.375 per cent with a term of five years were very well received among Austrian private investors. The retail and private banking sector accounted for 90 per cent of the total order volume of over EUR 200 million. The remaining 10 per cent were divided among banks, funds and insurance companies. Once again, demand for this bond clearly came from Austria – just 3 per cent of the orders were from outside the country (2 per cent of them from Germany). The price of the bond was set at an issue price of 101.389 per cent.

Dieter Hengl, the Management Board member responsible for Corporate & Investment Banking at Bank Austria, had this to say: "The bond from KTM is the third Austrian bond for private investors this year and shows that private investors’ appetite for corporate bonds remains unchecked. I am pleased that as the joint lead manager, we had the opportunity to provide KTM with our capital market expertise. Given the positive market response, we expect several more bonds of a similar size before the summer."

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

Details on the bond:

Issuer: KTM Power Sports AG
ISIN: AT0000A0UJP7
Nominal value: EUR 85,000,000
Denomination: EUR 500
Interest coupon: 4.375 per cent, payable semi-annually
Term:  5 years, only redeemable upon maturity
Issue price: 101.389 per cent
Value date: 24 April 2012
Redemption:  upon maturity on 24 April 2017 at the nominal value
Listing: Vienna Stock Exchange, regulated open market
Applicable law:  Austrian law

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