UPDATE 1-INTERVIEW-Austria may issue another, longer dlr bond

* After $1.5 bln, 3Y deal, may issue longer-dated paper

* Has realised 80 pct of planned 2009 issuance

* Expects to be at upper end of budgeted 28-33 bln eur

(Adds details, background, more quotes)

By Boris Groendahl

VIENNA, Sept 17 (Reuters) - Austria may issue another dollar-denominated bond with a longer maturity this year if market conditions are right, government debt agency head Martha Oberndorfer told Reuters in an interview on Thursday.

The Austrian Federal Financing Agency on Wednesday sold a $1.5 billion, three-year, bond at 51.7 basis points over U.S. Treasuries, its first syndicated U.S. dollar issue since 2005, and Oberndorfer said she may do another one this year.

"There are indeed plans to do another one at a different point of the (yield) curve," Oberndorfer said. "There is still demand out there."

"It could be that we are coming again with a maturity of more than 3 years, if the supply and demand factors are favourable for us," she added.

Oberndorfer says one of the reason for another issue was that there were dollar-denominated Austrian government bonds outstanding which were trading significantly above par, making them less attractive for some investors.

For instance, Austria's $1.2 billion, 5 pct bond due May 2014 is currently bid at 109.4 percent.

"There are many investors who would rather buy a paper that trades around 100 (percent), but not one that is at 108 to 110," she said.

Oberndorfer said she was very happy with the result of Wednesday's auction, which was picked up mainly in Asia, where 47 percent of the deal was bought. U.S. investors picked up 15 percent, and Europeans a quarter.

"This is a strong signal that the uncertainties over Austria are removed and that the whole world has realised how strong we are fundamentally," Oberndorfer said.

Austrian government bonds' spreads over Bunds widened significantly earlier this year, partly because of concerns the large exposure Austrian banks had to emerging Europe which could have required massive government-funded bank bailouts.

Oberndorfer said AFFA had now raised around 80 percent of its planned issuance volume of 28 to 33 billion euros ($41-49 billion) and that she expected that by the end of the year it would probably be at the upper end of that range.

"I think we will end up at the upper end, but I have no indication that this won't be enough," she said. (Reporting by Boris Groendahl; editing by Chris Pizzey)