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RBI Issues EUR 500 Million of Supplementary Capital

Published: October 10, 2013; 16:47 · (Vindobona)

Strengthening of capital structure provided by this measure.

RBI Issues EUR 500 Million of Supplementary Capital / Picture: © Raiffeisen Bank
  • Great demand from institutional investors
  • Books subscribed three times
  • 10-year-bond priced at 6 per cent

Raiffeisen Bank International AG (RBI) has issued EUR 500 million of supplementary capital (Tier 2) and thereby strengthened its capital structure. RBI regularly issues Tier 2 capital, either as benchmark transactions or as private placement form. The last issue was a callable subordinated note, which was placed on the Swiss capital market in May 2013.

The current issue encountered great demand from institutional investors. In particular, investors from the UK, Germany, Austria, France and Switzerland took part in the transaction. The books were subscribed three times.

"Our successful Tier 2 capital placement demonstrates that risk perception on the capital markets, in respect of our domestic market (CEE), has significantly improved. In spite of the US budget crisis straining the markets, the books were subscribed three times", Martin Grüll, CFO of RBI, said.