Austria successfully carried out a triple-tranche government bond syndication worth €7 billion ($7.38 billion) on Thursday, as confirmed by one of the joint bookrunner banks involved in the transaction.
This syndication involved a combination of a new bond issue and the tap of two existing bonds. The total volume of the issue includes €1 billion in issuer retention.
The treasury sold €4.5 billion, inclusive of €500 million in issuer retention, of the new 3.45% October 2030-dated bonds. The books for this bond closed with a demand of over €21.7 billion, with the spread set at 3 basis points above mid-swaps. The bond was priced at 99.757, yielding 3.490%.
Additionally, the treasury sold €1.25 billion, including €250 million in issuer retention, of the 0.25% October 2036 bond through a tap. This bond attracted a demand of over €25 billion, with the spread set 30 basis points above mid-swaps. The bond was priced at 63.975, with a yield of 3.822%.
Lastly, the treasury sold €1.25 billion, including €250 million in issuer retention, of the 1.85% May 2049 green bond. Books for this bond closed with a demand of over €14.4 billion, and the spread was set 53 basis points above mid-swaps. The bond was priced at 68.474, yielding 3.798%.
It is worth mentioning that Austria’s treasury has raised its government bond issuance target for 2023 to a maximum of €50 billion, while maintaining the overall funding requirement unchanged.
The joint lead managers for this syndication were Barclays, BofA Securities, Citi, Goldman Sachs Bank Europe SE, J.P. Morgan, and Raiffeisen Bank International.
- Emese Bartha (Contact details removed)