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20.09.2012

EUR 1.5 billion OMV bond successfully placed on the market

  • Bank Austria supports largest issue by an Austrian company this year as joint-lead manager

On Wednesday, 19 September OMV successfully placed the largest bond issue of an Austrian company this year with a total nominal value of EUR 1.5 billion. Split into two tranches, a 10-year eurobond amounting to EUR 750 million with a coupon of 2.625 percent and a 15-year eurobond also amounting to EUR 750 million with a coupon of 3.50 percent were issued.

The high demand from institutional investors – the denomination was EUR 100,000 – meant the order book was easily oversubscribed in just a short time, exhibiting a very high granularity before closing with approximately 400 individual orders. In terms of the investor breakdown, both issues were quite similar: 50 percent of the orders for the 10-year eurobond came from funds, followed by pension funds and insurance companies at 29 percent. 15 percent of the orders came from banks while the remaining 5 percent was picked up by other institutional investors. The 15-year eurobond displayed a similar breakdown, again with funds taking first place after placing 40 percent of the orders, followed by pension funds and insurance companies at 35 percent. 17 percent of the orders came from banks while the remaining 8 percent was picked up by other investors.

There were differences, however, in terms of the geographic breakdown. Demand for the 10-year bond centred around France, which accounted for 33 percent, followed by German investors at 28 percent and Austrian investors with 6 percent. By contrast, demand for the 15-year bond was dominated by the German-speaking countries: 48 percent of the orders came from Germany, followed by Austrian investors who picked up 12 percent. The rest of the demand for both bonds came from the United Kingdom, the Benelux countries, Switzerland and a combined position of other countries.

Dieter Hengl, Bank Austria Director for Corporate & Investment Banking: "I am particularly delighted that Bank Austria, as a strategic partner of OMV, has been able to employ its capital market expertise to contribute to the success of this the largest bond issue of an Austrian company. This huge transaction means that the Austrian market has now crossed the EUR 6 billion mark in total issue volume in 2012 – and Bank Austria has been joint-lead manager for almost two-thirds of the transactions. This means we are easily the leading player on the Austrian capital market and want to continue expanding our position in the future."

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

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