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Massive Demand for Austrian Railway Bonds

Published: May 10, 2012; 12:24 · (Vindobona)

The majority of the € 1.0bn bond was placed with high quality institutional investors in Germany, Asia, Austria and France; offering was 3.0x over-subscribed within 30 minutes.

Massive Demand for Austrian Railway Bonds / Picture: © Wikimedia Commons / NÖLB Mh [CC BY-SA 3.0 (]

Erste Group, mandated as joint bookrunner, issued a € 1.0bn fixed rate 20-year bond for OeBB-Infrastruktur AG, the sole owner, constructor and operator of virtually the entire Austrian rail network. The issue was priced at a spread of mid-swaps +95 bps, maturing in May 2032 with a fixed annual coupon of 3.375%. The company is indirectly owned by the Republic of Austria and benefits…

This article includes a total of 230 words.

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