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18.02.2015

EUR 500 million Mortgage Covered bond of UniCredit Bank Austria – oversubscribed almost three-fold

  • Great demand for the covered bond with 80 individual orders

Mortgage covered bond 2015/2025 (EUR 500 million, 0.75%) from UniCredit Bank Austria AG with a term of ten years and a coupon of 0.75 percent was priced and placed today. The issue price was set at 99.799 percent, which corresponds to a reoffer spread of 3 basis points above midswaps.

The issue was oversubscribed almost three-fold with 80 individual orders and a total order volume of roughly EUR 1.4 billion. Some 48 percent of the order volume was taken by banks, 30 percent by funds and asset managers, 18 percent by central banks and public institutions, and 4 percent by insurance companies. As expected, the majority of the demand came from Germany and Austria accounting for 52 and 25 percent respectively, followed by Asia (6 percent), the UK (5 percent), France and Switzerland (3 percent each) as well as the Benelux countries and Italy (1.5 percent each). The remaining 3 percent was split between various nations.

Francesco Giordano, CFO at Bank Austria: "The success of today's transaction is proof of the implementation strategy of Bank Austria and the strength of the Austrian Mortgage covered bond. The Mortgage covered bond issued today by Bank Austria achieved the narrowest price ever attained for a 10-year Austrian covered bond."

The transaction was managed on behalf of Bank Austria by BNP Paribas, Deutsche Bank, ING, LBBW and UniCredit Bank as the joint bookrunners. The issue will be listed on the second regulated market of the Vienna Stock Exchange.

The 2015/2025 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 issue:

Mortgage Covered Bond 2015/2025 – EUR 500 million, 0.75% from UniCredit Bank Austria

 ISIN: AT000B049572
Issuer: UniCredit Bank Austria AG
Lead Manager: BNP
DB
ING
LBBW
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: 18 February 2015
Volume: EUR 500 million
Denomination: EUR 100,000
Term: 10 years (value date: 25 February 2015, due date: 25 February 2025)
Coupon: 0.75%
Issue price: 99.799%
Redemption: On 25 January 2025 at 100%
Cancellation: Not possible
Stock exchange listing: Vienna Stock Exchange, second regulated market
Applicable law: Austrian law