Raiffeisen Zentralbank Osterreich AG (RZB) has issued EUR 1,250 million in senior notes in the form of a fixed rate bond with a three year tenor. With a pricing of mid-swaps plus 72 basis points, the bond pays a coupon of 5.875 per cent. The transaction was led by DZ Bank, HSBC and RZB itself.
«I'm delighted with this transaction's success as it reflects RZB's strong performance against the background of a conservative risk profile», said RZB CEO Walter Rothensteiner. Board Member Patrick Butler, who is responsible for Treasury and Investment Banking, added: «The facts speak for themselves. The demand was very strong and the deal priced tighter than similar-rated credits. Investors like RZB’s strong capital base and earnings growth.»
The transaction was oversubscribed within only a few hours. The bulk of the distribution was to Western European countries such as Germany, France, Spain, UK and Italy, although buying was also seen from the Middle East and Asia. The demand spanned various classes of investors such as funds, banks, money market managers, pension schemes and insurances, and also Retail investors with several single orders reaching three-digit levels.
The overwhelming demand enabled RZB to issue at the tight end of guidance. «We provide a high level of transparency, have been consistent and reliable in our funding actions and have a very strong business model.», adds Butler.
Raiffeisen Zentralbank Osterreich AG (RZB) is the central institution of the Austrian Raiffeisen Banking Group, the country’s largest banking group. It is a leading corporate and investment bank in Austria and also considers Central and Eastern Europe (CEE) as its home market. RZB is the only Austrian bank with a global network of business units reaching all important finance centres around the globe. It is also present in Asia via its branches and representative offices.
Via listed subsidiary Raiffeisen International Bank-Holding AG, RZB operates one of the largest banking networks in CEE. 17 markets are covered by subsidiary banks, finance leasing companies and a number of other financial services providers. About 13.7 million customers are attended to through more than 3,000 business outlets.