RZB issues bond guaranteed by Austria |
Autor: Bancherul.ro
2009-01-30 07:49 |
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Raiffeisen Zentralbank Österreich AG (RZB) has successfully issued its first benchmark issue in 2009 with a volume of 1.5 billion euros, said the bank in a press release.
This fixed-rate bond is guaranteed by the Republic of Austria with 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.
Along with RZB, pursuant to section 1 (4) of the Interbank Market Support Act (Interbankmarktstärkungsgesetz, IBSG), the Republic of Austria shall assume liability for the issues of securities by credit institutions pursuant to section 1 (1) 10 of the Austrian Banking Act (BWG). The bond is rated AAA/Aaa (S&P/Moody’s).
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