RZB issues third bond guaranteed by Austria

• Order book significantly over subscribed
• 1.5 billion Euros with a tenor of 2 years

Raiffeisen Zentralbank Osterreich AG (RZB) yesterday successfully issued its third benchmark issue in 2009 with a volume of 1.5 billion euros. This fixed-rate bond has a tenor of two years and is guaranteed by the Republic of Austria. The price of the issue was fixed at Mid-Swaps plus 62 basis points, paying an annual coupon of 2.5 per cent.

The issuing syndicate consisted of Bank of Amerika/Merrill Lynch, Deutsche Bank, HSBC and RZB. RZB's bond issue met broad interest amongst investors. The lion's share of the demand was concentrated in Europe, primarily in the German speaking area, the UK, the Benelux States and Italy.

Pursuant to section 1 (4) of the Interbank Market Support Act (Interbankmarktstarkungsgesetz), the Republic of Austria assumes liability jointly with RZB for this issue, which is in turn pursuant to section 1 (1) 10 of the Austrian Banking Act (BWG). The bond is rated AAA/Aaa (S&P/Moody's).

Via listed subsidiary Raiffeisen International Bank-Holding AG, RZB operates one of the largest banking networks in CEE, covering 17 markets across the region through subsidiary banks, leasing companies and a range of other financial service providers. The group’s more than 63,000 employees service over 14.7 million customers via more than 3,200 business outlets.

For further information please contact Gregor Bitschnau (+43-1-71 707-1955, gregor.bitschnau@rzb.at).

www.rzb.at,
www.ri.co.at