In the first half of 2018, the Vienna Stock Exchange continued to strengthen its position as a listing venue for international corporate bonds.
By the end of May, 25 corporate bonds of foreign issuers with a volume of EUR 1.9 billion have been listed on the Austrian exchange. These include LG Chem (South Korea) with an issuing volume of around EUR 500 million, the Italian fashion label Twinset (EUR 170 million) and the International Investment Bank (Russia; EUR 29 million).
At the end of June, Bosnia's Republika Srpska issued a EUR 168 million bond, becoming the first South-East European sovereign entity starting quoting at the Vienna bourse. Republika Srpska is one of two constitutional and legal entities of Bosnia and Herzegovina, the other being the Federation of Bosnia and Herzegovina.
The five-year Eurobonds which mature on June 28, 2023, were sold at an annual interest rate of 4.75%. The sole arranger of the deal was BMI Securities, a Hong Kong based broker. The law firm Wolf Theiss worked on the transaction as sole legal advisor.
It was the first time Republika Srpska placed bonds on the international market. The bonds are governed by Austrian law and are included in the Third Market of the Vienna Stock Exchange.
Although the entity planned to raise 200 million euro the government said it was satisfied with the result.
“The Ministry of Finance expresses satisfaction with the fact that the planned issue was placed successfully and Republika Srpska has positioned itself for the first time since its establishment as a relevant subject on the international financial market,” a statement on the government’s website said.
"This is a double debut: It is the first listing of a SEE-sovereign entity on the Vienna Stock Exchange, and it was the first international issue of bonds by the Republika Srpska ", Claus Schneider, partner at Wolf Theiss explained.
In total, 690 international bonds with an issuing volume of EUR 124 billion are currently listed on the Vienna Stock Exchange.
"The Vienna Stock Exchange continues to exploit its listing opportunities by bringing forward a high service quality, an efficient listing process and a competitive fee structure," said Christoph Boschan, CEO of Wiener Börse.
The Vienna Stock Exchange is the only securities exchange in Austria. It features a modern infrastructure and supplies market data and relevant information. It offers Austrian companies maximum visibility, high liquidity and transparency.
The Vienna Stock Exchange operates a central market datafeed for Central and Eastern Europe (CEE) and is well established as an expert for the calculation of indices with a reference to the region. Wiener Börse AG, together with its holding company, CEESEG, cooperates with over ten exchanges in CEE and is globally recognised for this unique know-how.