Austria Offers Europe's First Benchmark-Sized Century Bonds
- Country selling 100-year, five-year bonds in syndicated sale
- Offering arranged by BofAML, Erste, Goldman, NatWest, SocGen
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Austria is poised to become the first euro member to issue a benchmark-sized century bond, allowing it to lock in some of the lowest funding costs in history for the next 100 years.
The country is selling 3.5 billion euros ($4.2 billion) of the debt maturing in 2117, the biggest ever sale of 100-year bonds, at 50 basis points over its existing 30-year benchmark bond versus an initial target of about 60. This implies a yield of around 2.10 percent on the notes, according to exchange quotes at 4:09pm London.