VUB's Market Share and Financial Services
VUB INAUGURAL BENCHMARK CB ISSUE
EUR 500 MLN 5-YEAR MORTGAGE COVERED BOND
TERMS AND CONDITIONS
KEY ASPECTS OF THE TRANSACTION
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March 19, 2019, first EUR 500 mln syndicated covered bond benchmark in Slovakia priced by
VUB. The deal was well prepared with an expedited four day pan-European roadshow in
Scandinavia, Germany and Austria
Transaction was led by Banca IMI acting as Arranger and Lead Manager, Commerzbank,
Deutsche Bank, Erste Bank and LBBW as Lead Managers
Final orderbook was characterized by a granularity of over 160 high quality investors ordering
around EUR 2.4 bln resulting in an impressively 4.8x subscribed book
TRANSACTION HIGHLIGHTS
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Extensively positive feedback from investors during the roadshow allowed to exploit the strong
momentum and open books on Tuesday, the day right after the roadshow was concluded
Hence, books were opened in the morning at 9.00 CET communicating IPTs at MS+40 area and
unsurprisingly, given the positive feedback collected from investors across jurisdictions the deal
attracted very high investor attention from the beginning
At the time of the first update at 10.05 CET the orderbook was already in excess of EUR 1bn
(excl. JLM interest) and just around 25 minutes later guidance was set at MS+35bps area in the
second update on the back of a fast-growing orderbook standing above of EUR 1.5bn (excl. JLM
interest)
As books stood at EUR 2.25bn+ the guidance was revised to MS+30bps (+/-2 WPIR) in the third
update at 11.15 CET. Eventually, the book peaked at EUR 2.6bn and the spread could be finally
set at the lower end of the revised guidance at MS+28bps
Issuer
Vseobecna uverova banka, a.s. (VUB)
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Issue Rating
Aa2 (by Moody's)
Size
EUR 500 mln
Issue Type
Mortgage Covered Bond
Settlement
26 March 2019 (T+5)
Maturity
26 March 2024
Coupon
0.250% Fixed, Annual, Act/Act (ICMA)
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Guidance
MS +40bps area
Re-offer Spread MS +28 bps
Spread over
Benchmark
OBL 0% Apr 2024 + 69.1bps
Re-offer Yield
0.381%
Re-offer Price
99.352%
Denomination
EUR 100k/ 100k
Law
Slovak Law
Listing
ISIN
Bookrunners
Manufacturer
Targer Market
Luxembourg
SK4120015108
Banca IMI, Commerzbank, DB, Erste
Group, LBBW
Manufacturer targer markets (MIFID II
product governance) is eligible
counterparties and professional clients
only (all distribution channels)
Source: VUB
Distribution by Geography
GE/AT
3.0%
Nordics
4.0%
6.0% 3.0%
Slovakia
2.0%
BeNeLux
8.0%
52.0%
8.0%
UK
Italy
50.0%
14.0%
Switzerland
Iberia
Other
Distribution by Investor Type
5.0%
6.0%
39.0%
Funds / AM
Banks
CB / Ols
Insurers / PF
54View entire presentation