Raiffeisen International core-shareholder RZB issues bond guaranteed by Austria

 

• Keen investor interest
• Order book twice oversubscribed within one hour

Raiffeisen Zentralbank Österreich AG (RZB), mother company and core-shareholder of Raiffeisen International Bank-Holding AG, has successfully issued its first benchmark issue in 2009 with a volume of 1.5 billion euros. This fixed-rate bond is guaranteed by the Republic of Austria and has a tenor of five years. The price of the issue was fixed at Mid-Swaps plus 68 basis points, paying an annual coupon of 3.625 per cent.

RZB’s bond issue met broad interest amongst investors the world over. The issuing syndicate consisted of RZB, Citigroup, Deutsche Bank and HSBC. The lion’s share of demand was concentrated in Germany, Austria and the United Kingdom. The syndicate further achieved a 32 per cent allocation to fund managers which is an outstanding level of participation for Austrian government guaranteed debt. 

The bond is an attractive investment, as it offers the safety of a government bond combined with a yield premium. Denomination is 1,000 euros.

Pursuant to section 1 (4) of the Interbank Market Support Act (Interbankmarktstärkungsgesetz), the Republic of Austria assumes liability jointly with RZB for this issue, which is in turn pursuant to section 1 (1) 10 of the Austrian Banking Act (BWG). The bond is rated AAA/Aaa (S&P/Moody’s).