Austria Issues €7 Billion Government Bond Syndication
Austria has successfully issued €7 billion ($7.38 billion) in a triple-tranche government bond syndication, with the participation of several joint bookrunner banks. The syndication includes a combination of a new bond issuance and the tap of two existing bonds.
Successful Sale of New October 2030 Bonds
The treasury sold €4.5 billion, including €500 million issuer retention, in the new October 2030-dated bonds. The closing of books for this particular bond saw an overwhelming demand of over €21.7 billion. The spread was set at 3 basis points above mid-swaps, reflecting positive market sentiment.
Strong Demand for the Tap of October 2036 Bond
Additionally, the treasury successfully sold €1.25 billion, including €250 million issuer retention, in the tap of the 0.25% October 2036 bond. The demand for this bond reached an impressive €25 billion. The spread was set at 30 basis points above mid-swaps, indicating investor confidence.
Green Bond's Favorable Reception
The treasury also secured €1.25 billion, including €250 million issuer retention, in the issuance of the 1.85% May 2049 green bond. The books for this green bond closed at over €14.4 billion, underscoring the growing interest in sustainable investments. The spread was set at 53 basis points above mid-swaps.
Expanding Government Bond Issuance Target
Austria's treasury recently raised its government bond issuance target for 2023 to a maximum of €50 billion, an increase from around €45 billion. Despite this adjustment, the overall funding requirement remains unchanged.
The joint lead managers for this successful syndication were Barclays, BofA Securities, Citi, Goldman Sachs Bank Europe SE, J.P. Morgan, and Raiffeisen Bank International.
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