EUR 500 million Mortgage Covered Bond of UniCredit Bank Austria – oversubscribed more than five-fold

  • Great demand for Mortgage Covered Bond with 117 individual orders

Mortgage Covered Bond 2014/2020 (EUR 500 million, 0.50%) from UniCredit Bank Austria AG with a term of 5½ years and a coupon of 0.50 percent was priced and placed today. The issue price was set at 99.425 percent, which corresponds to a reoffer spread of 7 basis points above midswaps.

The issue was oversubscribed more than five-fold with 117 individual orders and a total order volume of roughly EUR 2.6 billion. Some 62 percent of the order volume was assigned to banks, 28 percent to funds, 6 percent to insurance companies and 4 percent to central banks. As expected, the majority of the interest came from Germany (56 percent), followed by Austria, the Benelux states and UK/Ireland with 7 percent each, Italy (6 percent), the Scandinavian countries and the Middle East/Asia with 4 percent each, Switzerland (3 percent) and France (2 percent). The remaining 4 percent was made up of Andorra, Malta, Spain and the USA.

Francesco Giordano, CFO at Bank Austria: “The demand for safe investments is still very high, as shown by the stunning uptake of our mortgage covered bond issued on the market today. With this issue we managed to achieve the highest oversubscription and the broadest geographical spread of any covered benchmarks we have issued in the past. This is obviously a result that we are very happy about.”

The transaction was managed on behalf of Bank Austria by ABN-Amro, HSBC, Natixis, Nord LB and UniCredit Bank as the joint bookrunners. The issue will be listed on the second regulated market of the Vienna Stock Exchange.

The 2014/2020 Mortgage Covered Bond of UniCredit Bank Austria is expected to be given an Aa1 rating by Moody’s and therefore fulfils the highest security criteria.

Enquiries: Bank Austria Media Relations
Volker Moser, Tel. +43 (0) 50505 - 52854
E-Mail: volker.moser@unicreditgroup.at

Details on the bond issue:

Mortgage Covered Bond 2014/2020 – EUR 500 million, 0.50% from UniCredit Bank Austria

ISIN: AT000B049531
Issuer: UniCredit Bank Austria AG
Lead Manager: ABN-Amro
Nord LB
UniCredit Bank AG (technical lead)
Documentation: Mortgage Covered Bond (as part of EMTN Programme)
Issue rating: Aa1 from Moody’s
Status: Covered Bond
Sale, pricing: 16 September 2014
Volume: EUR 500 million
Denomination: EUR 100,000
Term: 5.5 years (value date: 16 September 2014, due date: 16 January 2020)
Coupon: 0.50%
Issue price: 99.425%
Redemption: On 16 January 2020 at 100%
Cancellation: Not possible
Stock exchange listing: Vienna Stock Exchange, second regulated market
Applicable law: Austrian law