Bank Austria places very successful EUR 500 million senior unsecured benchmark bond

  • About 200 individual orders and the three-fold oversubscription of the order book underscore the success of the issue

Bank Austria today issued a five-year bond with a volume of EUR 500 million. This was the first euro-denominated senior unsecured benchmark bond from the bank in over seven years, and the first benchmark bond issued this year.

The "Senior Unsecured Benchmark-Anleihe 2013/2018 – 500 Millionen Euro, 2.625 %" bond from UniCredit Bank Austria AG with a term of five years and a coupon of 2.625 per cent was priced this afternoon. The issue price was set at 99.958 per cent, which corresponds to a re-offer spread of 163 basis points over mid-swap.
With around 200 individual orders and a total order volume of approximately EUR 1.6 billion, the issue was oversubscribed three fold. Roughly 85 per cent of the total order volume came from funds (50 per cent) and banks (35 per cent), and the remainder from central banks, insurance companies, corporate customers, hedge funds and other investors. According to the order book before allocation, roughly 48 per cent of the demand came from the German-speaking markets. Aside from this, demand was especially high in Great Britain/Ireland (14.5 per cent), France (11 per cent), Scandinavia (9 per cent) and the Benelux countries (8 per cent). The rest of the orders came from Switzerland, Asia, Italy, Spain, Portugal, the Middle East and Eastern Europe.

Dieter Hengl, the Management Board member responsible for Corporate & Investment Banking at Bank Austria, had this to say about the issue: "In line with the principle of self-financing, the group has adopted a new strategy under which UniCredit Bank Austria is now also again issuing senior unsecured debt in benchmark form. As the order book shows, this return after more than seven years generated a very positive response on the market. Our goal now is to build up a curve for senior benchmarks alongside the mortgage bond curve over time."

Francesco Giordano, CFO of Bank Austria: "Over the course of a series of investor meetings in different parts of Europe, including France, the Benelux countries and Scandinavia, we saw support for and interest in our senior unsecured benchmark project. And this interest was confirmed by the high rate of participation by international investors."

The transaction was completed for Bank Austria by Bayerische Landesbank, BNP Paribas, DZ Bank, Danske Bank and UniCredit as joint book runners. The issue will be listed on the second market of the Vienna Stock Exchange.

Enquiries: Bank Austria Media Relations Austria
Matthias Raftl, Tel. +43 (0) 50505 - 52809
E-mail: matthias.raftl@unicreditgroup.at

Details on the bond issue:

Unbesicherte Anleihe 2013/2018 – 500 Millionen Euro, 2,625 % der UniCredit Bank Austria AG

ISIN: XS0881544281
Issuer:  UniCredit Bank Austria AG
Lead managers: Bayerische Landesbank
BNP Paribas
DZ Bank AG
Danske Bank
UniCredit Bank AG (technical lead)
Documentation: Euro Medium Term Note Program 
Status: unsecured, pari passu
Sale, pricing: 22 January 2013
Volume:  EUR 500 million
Denomination:  EUR 100,000
Term: 5 years (value date: 30 January 2013; maturity date: 30 January 2018)
Coupon:  2.625%
Issue price: 99.958%
Redemption:  on 30 January 2018, 100% of the nominal value
Cancellation:  Not possible
Listing:   Vienna Stock Exchange, second market
Applicable law: English law


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