Raiffeisen Bank International AG (RBI) has issued EUR 1.0 billion in senior notes in the form of a fixed rate bond with a three year tenor. The pricing was fixed at the lower end of original price guidance at mid-swaps plus 145 basis points. The bond pays a coupon of 3.625 per cent; the transaction was jointly led by DZ Bank, Deutsche Bank, HSBC and RBI itself.
The transaction, which marks the first unsecured bond issued by an Austrian bank in more than two years, was significantly over-subscribed within a few hours. «The success of this issue reflects the outstanding reputation of the Raiffeisen brand and the positive macroeconomic outlook for our home market Central and Eastern Europe,» said Martin Grull, CFO of RBI. «The bond was not only more tightly priced than issues of banks with a comparable rating, but also significantly oversubscribed due to the strong demand for it,» he added.
The long-term debt ratings of RBI are as follows: A1 (Moody’s), A (Standard & Poor’s) and A (Fitch). The bulk of the distribution was to Western Europe, with demand spanning various classes of investors such as funds, banks, money market managers, pension schemes and insurers, as well as retail investors.
Raiffeisen Bank International AG (RBI) regards both Austria, where it is a leading corporate and investment bank, and Central and Eastern Europe (CEE) as its home market. In CEE, RBI operates an extensive network of subsidiary banks, leasing companies and a range of other specialised financial service providers in 17 markets.
RBI is the only Austrian bank with a presence in both the world’s financial centres and in Asia, the group’s further geographical area of focus.
In total, more than 59,000 employees service about 15 million customers through around 3,000 business outlets, the great majority of which are located in CEE.
RBI is a fully-consolidated subsidiary of Raiffeisen Zentralbank Osterreich AG (RZB). RZB indirectly owns around 78.5 per cent of the common stock, the remainder is in free float. RBI’s shares are listed on the Vienna Stock Exchange. RZB is the central institution of the Austrian Raiffeisen Banking Group, the country’s largest banking group, and serves as the group head office of the entire RZB Group, including RBI.