GBP 500 million five year floating rate placed within a few hours. RZBservices international top-notch investors.
Raiffeisen Zentralbank Osterreich AG (RZB) launched its inaugural GBPbond to cover a part of its refinancing needs. The 500 million poundsterling five year floating rate note (FRN) was priced at 11 basispoints above Libor.“The issue was an overwhelming success, it was sold within a few hours”, says RZB’s CEO Walter Rothensteiner. The bulk of the deal was placed internationally. “This is proof of both RZB’s excellent reputation on the global capital market and its international placing power.”
“Thanks to careful timing and the choice of strong bookrunners, the deal was significantly oversubscribed”, says Patrick Butler, Board Member of RZB, responsible for Treasury and Investment Banking. “While the benchmark size of such a transaction is GBP 300 million. Demandwas twice as high.
While demand from the UK was the clear driver– including buyers, who usually do not invest in Eurozone issuers –, Continental Europe and Asia were notable additional investor centres. Apart from the usual bank buyers, there was also good demand from corporate treasuries and investment managers.
In the course of executing this transaction“RZB was able to establish relations with investors that never had credit lines for RZB before”, comments Butler. “That opens doors to new business opportunities.” Furthermore the transaction attracted investors’ attention to the RZB name. “Some non-sterling buyers were inspired by this transaction to buy RZB floaters on the secondary market in other currencies, helping spread-tightening there.”
HSBC, UBS and were the Bookrunners of this debut GBP bond issue with RZBalso being in the Lead Management.
Raiffeisen Zentralbank Osterreich AG (RZB) is the central institution ofthe Austrian Raiffeisen Banking Group, the country''s largest bankinggroup. It is a leading corporate and investment bank in Austria and alsoconsiders Central and Eastern Europe (CEE) as its home market. Vialisted subsidiary Raiffeisen International Bank-Holding AG, it operatesone of the leading banking networks in CEE with subsidiary banks andfinance leasing companies in 16 markets. More than 11.7 millioncustomers are attended to through more than 2,775 business outlets.
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