OeKB readies debut SRI bond

(Global Capital, London, 5 September 2019) OeKB, Austria’s export credit agency, will go on roadshow next week to present its recently established sustainability bond framework to European investors. BNP Paribas, Danske Bank, HSBC and UniCredit won the mandate and will arrange a series of fixed income investor meetings across Europe, commencing on Friday, September 13. An inaugural bond in the format is expected to follow. A debut euro benchmark sustainability bond in an intermediate maturity may follow subject to market conditions, which will be OeKB’s first ever socially responsible investment (SRI) bond. Under its sustainability bond framework, OeKB can issue green, social and sustainability bonds. OekB has a long-term annual funding requirement of €5bn, comprising two to three benchmark issues, private placements, medium term notes, and issuance in other strategic markets such as sterling and Australian dollars. It has a focus on maturities of up to 10 years. Sustainability Bonds are bonds where the proceeds will be exclusively applied to finance or re-finance a combination of both Green and Social Projects as defined by the International Capital Market Association (ICMA) guidelines.