EUR 500mn Aug 2031:Raiffeisenlandesbank Oberoesterreich’s return to covered market

Raiffeisenbank Oberoesterreich has once again made a successful debut on the international capital market. The benchmark covered bond with a volume of 500 million euros was successfully placed with institutional investors. The transaction generated significant interest and was driven by strong demand. The final order book reached a volume of approximately 1.3 billion euros, making it more than two and a half times oversubscribed. A total of 62 accounts participated in the issuance, underscoring the broad market acceptance and the high quality of the order book. The investor base was also geographically well-diversified, with approximately 50% of investors located outside the DACH region—a strong indication of Raiffeisenlandesbank Oberoesterreich’s international standing in the covered bond market. The order book was well-diversified and developed dynamically throughout the entire marketing phase. The continued high demand enabled the bank to successfully set the price.

Raiffeisenlandesbank Oberoesterreich AG’s cover pool is rather plain but it is precisely this fact that makes it very attractive to our investors. Our cover pool comprises 100% Austrian loans—no foreign currencies, no NPLs, and no derivatives—and is highly granular, consisting of approximately 50,000 different loans, with a high proportion of residential mortgages. Our mortgage bond rating from Moody’s is Aaa, the highest possible rating. The nominal overcollateralization of approximately EUR 5 billion—or a percentage overcollateralization of more than 100 %—is testimony of substantial hidden reserves within the cover pool.

As credit demand slowly recovers and the liquidity situation stabilizes, Raiffeisenlandesbank Oberoesterreich AG will once again refinance itself regularly on the capital market as a frequent issuer. Depending on how the credit and liquidity situations develop, another offering will occur in 2026. In the coming years, benchmark issuances can also be expected on a regular basis. As Austria’s fifth-largest bank by total assets, we will continue to use the benchmark format and place issues of EUR 500 million or more. Sub-benchmark formats are not planned for the time being.