Bawag bags stellar covered response as law enters final stage

By Bill Thornhill
04 May 2021

Bawag became the first Austrian issuer to price a covered bond through mid-swaps since June 2018 on Tuesday when it issued a benchmark 10 year that attracted strong initial order momentum and an exceptionally granular order book. At the same time Austria’s Covered Bond Act consultation came to an end, suggesting the new legal framework will soon be enacted.

Bawag returned to the covered bond market for the second time this year to issue a €500m May 2031 mortgage covered bond, rated Aaa, at 1bp through mid-swaps, which offered a rare 1bp concession.

The deal attracted re-offer demand of more than €2bn from over 80 investors and ...

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