UniCredit Bank Austria successfully places 750 million Euro Public Sector Covered Bond
- UniCredit Bank Austria issues new covered bond worth €750 million at a premium of just 22 basis points above the risk-free interest rate
- The covered bond is secured by receivables against the public sector
- The five-year issue was significantly oversubscribed, underscoring the strong confidence of institutional investors
UniCredit Bank Austria has successfully placed a public sector covered bond with a total volume of €750 million and a term of five years on the international capital market. The covered bond is secured by receivables against the public sector, in particular by loans to municipalities, cities, and states, almost exclusively from Austria. The issue is aimed at institutional investors.
With a final total volume of more than €2 billion, the order book was almost three times oversubscribed. The interest rate was fixed at 2.625 percent, which corresponds to a premium of 22 basis points on the risk-free Euro Mid-Swap rate.
Hélène Buffin, CFO of UniCredit Bank Austria: “The issuance of our public sector covered bond was a great success on the international capital market. We are very pleased with the demand. The fact that our issue was almost three times oversubscribed is a clear sign of the great confidence international investors have in UniCredit Bank Austria. The strong result confirms our excellent positioning on the capital market and shows that our outstanding performance and credit quality are being rewarded in the long term.”
The bond has an Aaa rating from Moody's and was issued to institutional investors. The investor base was well diversified and comprised 82 investors, with 57 percent coming from Germany, Austria, and Switzerland, 14 percent from the UK/Ireland, 13 percent from Northern Europe/Scandinavia, 7 percent from Benelux, 7 percent from France, and 2 percent from Southern Europe. The bonds were distributed among various categories of institutional investors, such as banks (56 percent), asset managers/pension funds (33 percent), central banks and official institutions (7 percent), and insurance companies (4 percent).
CIBC Capital Markets, DekaBank, Erste Group, Natixis, Nykredit, Raiffeisen Bank International, and UniCredit were appointed as joint lead managers.
Enquiries:
UniCredit Bank Austria Media Relations
Matthias Raftl, tel.: +43 (0) 5 05 05-52809;
E-mail: matthias.raftl@unicreditgroup.at