Amid global market turbulence caused by the Iran war, Austria has raised €3.5 billion in fresh capital through the issuance of two syndicated federal bonds.
The issuance volume of the newly launched 30-year government bond amounted to €2.5 billion, with an issuance yield of 3.778 percent. The green federal bond 2023–2029 was increased by €1 billion at a yield of 2.373 percent, the Österreichische Bundesfinanzierungsagentur (OeBFA) announced.
“Safe Haven” Status
According to the OeBFA, Austria benefited from its “safe haven” status among investors in light of geopolitical developments during the bond issuance. Syndicated government bonds have been issued through a banking consortium since 1999. The OeBFA manages the federal government’s financial debt and is responsible, among other things, for issuing federal bonds.
The Republic of Austria plans to raise between €43 billion and €47 billion on financial markets this year through federal bonds. At the end of January, federal financial debt stood at €314.51 billion, with an effective interest rate of 2.07 percent per year and an average remaining maturity of 11.79 years.
