First Mortgage Covered Bond from UniCredit Bank Austria of 2014 with a volume of EUR 500 million oversubscribed nearly two times

  • Bond generated high demand with 80 individual orders

The Hypothekenpfandbrief 2014/2024 – 500 Millionen Euro, 2.375 % Mortgage Pfandbrief from UniCredit Bank Austria AG with a term of ten years and a coupon of 2.375 per cent was priced and placed today. The issue price was set at 99.272 per cent. This corresponds to a reoffer spread of 35 basis points over the mid-swap.

With 80 individual orders and a total order volume approaching EUR 1 billion, the issue was oversubscribed nearly two times. Slightly over 80 per cent of the total order volume came from banks (52 per cent) and funds (31 per cent). The remainder came from central banks (12 per cent) and insurance companies (5 per cent). As expected, the greatest demand came from Germany (47 per cent), geographically followed by Austria (21 per cent), Asia (10 per cent), France (9 per cent), Great Britain (6 per cent), Italy (3 per cent), Switzerland (2 per cent), together with Luxembourg and Portugal (altogether 2 per cent).

Francesco Giordano, Chief Financial Officer of Bank Austria: "Francesco Giordano, CFO of Bank Austria: "Despite the high volume of issues since the beginning of the year, our bond was received very well by investors, as was impressively demonstrated by the fact that it was oversubscribed nearly two times. The issue placed today is our first benchmark transaction of 2014; additional issues will follow, and will include both covered and senior unsecured bonds. As of today, our funding plan for 2014 envisages a total of four benchmark issues."

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

It is expected that this Hypothekenpfandbrief 2014/2024 from UniCredit Bank Austria will be rated Aa1 by Moody's, thereby meeting nearly the highest security criteria.

Enquiries: Bank Austria Media Relations
Martin Kammerer, Tel. +43 (0) 50505 - 52803
E-mail: martin.kammerer@unicreditgroup.at

Details on the bond issue:

Hypothekenpfandbrief 2014/2024 – 500 Millionen Euro, 2.375 % Mortgage Covered Bond from UniCredit Bank Austria AG

ISIN: AT000B049465
Issuer: UniCredit Bank Austria AG
Lead managers: BNP Paribas
Lloyds Bank
UniCredit Bank AG (technical lead)
Documentation: Mortgage Covered Bond
Issue rating: Aa1 from Moody’s (expected)
Status: Senior secured, pari passu
Sale, pricing: 22 January 2014
Volume: EUR 500 million
Denomination: EUR 100,000
Term: 10 years (value date: 22 January 2014; maturity date: 22 January
Coupon: 2.375%
Issue price: 99.272%
Redemption: On 22 January 2024 at 100%
Cancellation: Not possible
Listing: Vienna Stock Exchange, second market
Applicable law: Austrian law