BAWAG plans green bond issue with market stabilization

Published 01/14/2025, 03:48 AM

FRANKFURT - Deutsche Bank AG (NYSE:DB), acting as the Stabilisation Coordinator, has announced that BAWAG (VIE:BAWG) PSK Bank fuer Arbeit und Wirtschaft und Oesterreichische Postsparkasse AG (BAWAG) is planning to issue a green bond with an optional seven-year non-call period. The stabilization period for this new security is expected to commence today and is anticipated to conclude by February 25, 2025.

The bond, termed "BAWAG P.S.K. EUR Bmk 7NC6 Green Snr Pref," aims to attract investors with an interest in environmentally sustainable projects. The initial price thoughts (IPTs) for the bond issue are set in the area of mid-swap plus 130-135 basis points. The final aggregate nominal amount and ISIN code for the bond are yet to be confirmed.

In the process of this offering, stabilization managers including Barclays (LON:BARC), Danske Bank (CSE:DANSKE), Deutsche Bank (ETR:DBKGn), Erste Group, and TD Securities have the authorization to over-allot or undertake transactions to maintain the market price of the securities. These actions are intended to prevent the price from dropping below the offering level during the stabilization period. However, there is no guarantee that stabilization will occur, and if initiated, it can be halted at any time.

The announcement emphasizes that this pre-stabilization notice does not constitute an offer to sell or a solicitation for an investment in the securities. The securities are directed at qualified investors and those with professional experience in investment matters in the United Kingdom (TADAWUL:4280), as well as at qualified investors in the European Economic Area (EEA).

The securities mentioned have not been, and will not be, registered under the United States Securities Act of 1933 and, therefore, may not be offered or sold in the United States absent registration or an exemption from registration. There will be no public offering of these securities in the United States.

This information, based on a press release statement, is intended for distribution outside the United States or in jurisdictions where such distribution would be unlawful, and is subject to terms and conditions for use and distribution.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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