Austria

Austria’s Raiffeisen Bank International (RBI) could give investors their first chance to invest in a new additional tier one (AT1) deal, after two weeks in which the asset class went through its first write-down and coupon suspension.

Kommunalkredit, which recently had its public sector covered bonds rated A with S&P, has received positive investor feedback whilst marketing its social covered bond this week.

Andritz, the Austrian machinery maker, raised €400m in a dual tranche Schuldschein transaction this week. The large size — with tenors of seven and 10 years — illustrates commercial banks' growing willingness to lend for long.

A €17m floating rate issue will be listed on the Third Market of the Vienna Börse to fund the acquisition of Corpo Vigili Giurati, the Italian private security group, by the Berni-Gamberini family.

Recently de-merged Kommunalkredit Austria (KA) has mandated leads to roadshow the first social covered bond ever to be issued from a public sector programme, and the first green bond from Austria. Rated Baa2, it is also set to be one of the weakest credits in the covered bond universe.

Oesterreichische Kontrollbank this week became the latest public sector borrower to return to the sterling market after a lengthy absence — and was rewarded with its largest ever issue in the currency at £350m.

Oesterreichische Kontrollbank has mandated banks for its first sterling deal in 1.5 years, joining a host of other public sector issuers to return to the currency this year.

The European Energy Exchange will next month introduce financially settled Austrian power futures in response to the planned split of the German-Austrian electricity price zone.

Sparkasse Hamburg extended its curve and priced a Pfandbrief inside fair value with good demand this week. At the same time Hypo Tirol paid a relatively small concession for its sub-benchmark Pfandbrief, suggesting any lingering concern over Austrian covered bonds following the Heta saga has been put to rest.

Kommunalkredit Austria AG said on Monday that it had accepted all validly tendered bonds following its offer published May 4.

Two Austrian banks and a Dutch bank have mandated leads for covered bond deals taking the number of banks in the covered bond pipeline to six.

Legislators in the Czech Republic and Austria are in the process of updating their covered bond laws and Lithuania has set out its intention to introduce a framework.