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15.05.2014

UniCredit Bank Austria's public sector covered bond with a volume of EUR 500 million oversubscribed almost three times

  • Very strong demand for this covered bond issue, with roughly 100 individual orders

The "Öffentlicher Pfandbrief" 2014/2021 – EUR 500 million, 1.375% public sector covered bond from UniCredit Bank Austria AG with a term of seven years and a coupon of 1.375% was priced and placed today. The issue price was set at 99.967 per cent. This corresponds to a reoffer spread of 25 basis points over the mid-swap.

With roughly 100 individual orders and a total order volume in excess of EUR 1.4 billion, the issue was oversubscribed almost three times. Of the total order volume, 83 per cent came from funds (46 per cent) and banks (37 per cent), with central banks (10 per cent), insurance companies (4 per cent) and firms (3 per cent) accounting for the remainder. As expected, the greatest demand came from Germany (71 per cent), followed in geographical terms by Austria (10 per cent), Asia (4 per cent), Switzerland, Scandinavia/Benelux and France (3 per cent each), Italy (2 per cent) and Great Britain (1 per cent).

Francesco Giordano, Chief Financial Officer of Bank Austria: "The very strong demand, together with good market conditions supporting the transaction, allowed us to issue this bond at the end pricing that we were targeting. Placement of this public sector covered bond, which is already the third covered benchmark bond in 2014, represents another important step in our refinancing activities this year."

The transaction was completed for Bank Austria by Credit Agricole, Danske Bank, HSBC, LBBW and UniCredit Bank as joint bookrunners. The issue will be listed on the second market of the Vienna Stock exchange.

It is expected that the Öffentlicher Pfandbrief 2014/2021 public sector covered bond from UniCredit Bank Austria will be rated Aaa by Moody's, thereby meeting the highest security criteria.

Enquiries: Bank Austria Media Relations
Volker Moser, Tel. +43 (0)5 05 05 52854
E-mail: volker.moser@unicreditgroup.at

Details on the bond issue:

Öffentlicher Pfandbrief 2014/2021, EUR 500 million, 1.375% from UniCredit Bank Austria AG

ISIN: AT000B049507
Issuer: UniCredit Bank Austria AG
Lead managers: Credit Agricole
Danske Bank
HSBC
LBBW
UniCredit Bank AG (technical lead)
Documentation: Öffentlicher Pfandbrief Series 460
Issue rating: Aaa by Moody's (expected)
Status: Covered bond
Sale. pricing: 26 May 2014
Volume: EUR 500 million
Denomination: EUR 100,000
Term: 7 years (value date: 26 May 2014; maturity date: 26 May 2021)
Coupon: 1.375%
Issue price: 99.967%
Redemption: On 26 May 2021 at 100%
Cancellation: Not possible
Listing: Vienna Stock Exchange, second market
Applicable law: Austrian law