New mortgage covered bond of UniCredit Bank Austria with a volume of EUR 500 million oversubscribed twofold

  • Bank Austria paves the way for further Austrian issuers of covered bonds
  • 60 individual orders reflect good response to the mortgage covered bond

The mortgage covered bond 2015/2022 – EUR 500 million, 0.75% floated by UniCredit Bank Austria AG with a term of seven years and a coupon of 0.75 percent was priced and placed today. The issue price was set at 99.783 percent, which corresponds to a reoffer spread of 5 basis points above mid-swap rates.

The issue was oversubscribed twofold with 60 individual orders and an order volume of over EUR 1 billion. Banks accounted for 40 percent of the order volume, central banks and public institutions for 32 percent, funds and asset managers for 27 percent, and insurance companies for 1 percent. As expected, Germany and Austria displayed the strongest demand, accounting for 36 percent and 35 percent, respectively, followed by the Benelux countries (7 percent), Switzerland and Liechtenstein (5 percent), the Nordic countries (4 percent), Spain and Italy (4 percent), the United Kingdom and Ireland (3 percent) and France (2 percent). The remaining 4 percent is distributed among a number of other countries.

Mirko Bianchi, CFO of Bank Austria: "Bank Austria’s successful transaction today has again opened Austria’s covered bond market after an absence of more than six months by Austrian issuers. The difficult national conditions resulted in a sharp downturn in issue activity by Austrian financial institutions. We are glad that the issue floated today showed that international investors are again investing in Austria."

The transaction was managed on behalf of Bank Austria by Bayern LB, DZ Bank, ING, Société Générale and UniCredit Bank as joint bookrunners. The issue will be listed on the OTC market of the Vienna Stock Exchange.

The mortgage covered bond 2015/2022 of UniCredit Bank Austria was given an Aaa rating by Moody’s, and on this basis it meets the highest security criteria.

Bank Austria Media Relations
Matthias Raftl, tel. +43 (0)5 05 05 52809
e-mail: matthias.raftl@unicreditgroup.at

Details of the issue:

Mortgage covered bond 2015/2022 – EUR 500 million, 0.75% of UniCredit Bank Austria AG

ISIN: AT000B049598
Issuer: UniCredit Bank Austria AG
Lead managers: Bayern LB
DZ Bank
Société Générale
UniCredit Bank AG (technical lead)
Documentation: Mortgage covered bond (as part of the EMTN programme)
Rating of the issue: Aaa by Moody’s
Status: Covered bond
Sale, pricing: 1 September 2015
Volume: EUR 500 million
Denomination: EUR 100,000 + EUR 100,000
Term: 7 years (value date: 8 September 2015, due 8 September 2022)
Coupon: 0.75 %
Issue price: 99.783 %
Redemption: on 8 September 2022 at 100 %
Callable: No