Raiffeisen Zentralbank Osterreich AG (RZB) yesterday successfully issued its second benchmark issue in 2009 with a volume of 1.25 billion Euros and therefore exceeded its target volume of one billion Euros. This fixed-rate bond is guaranteed by the Republic of Austria with a tenor of three years. The price of the issue was fixed at Mid-Swaps plus 85 basis points, paying an annual coupon of 3 per cent.
RZB's bond issue met broad interest amongst investors the world over. The interest was concentrated on the period after the books opening. The issuing syndicate consisted of RZB, DZ Bank, Morgan Stanley, Societe Generale and UBS. The lion's share of demand was concentrated in the German speaking area, the Middle East and UK.
Pursuant to section 1 (4) of the Interbank Market Support Act (Interbankmarktstarkungsgesetz), the Republic of Austria assumes liability jointly with RZB for this issue, which is in turn pursuant to section 1 (1) 10 of the Austrian Banking Act (BWG). The bond is rated AAA/Aaa (S&P/Moody's).
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, leasing companies and a range of other financial services providers. 14.6 million customers are served in more than 3,100 business outlets.
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