Rautner Rechtsanwälte advises banking syndicate on Erste Group’s inaugural issue of EUR 500mn Non-Preferred Senior Notes

Rautner Rechtsanwälte advised an international banking syndicate comprising Landesbank Baden–Württemberg, Morgan Stanley, NATIXIS and Société Générale as Joint Lead Managers on the successful issuance of EUR 500 million fixed-rate Non-Preferred Senior notes by Vienna based Erste Group Bank AG (Closing: 22 May 2019). The bond was issued as a drawdown under Erste Group’s EUR 30,000,000,000 Debt Issuance Programme dated 10 May 2019. The notes are intended to be available for the minimum requirement for own funds and eligible liabilities (MREL) under the revised bank recovery and resolution framework (BRRD).

It is the first international benchmark transaction of non-preferred senior instruments – a new class of debt instruments introduced by EU legislators – seen in Austria.

The bond was placed with institutional investors and listed on the Official Market of the Vienna Stock Exchange. The bond is governed by German law except its status clause which is subject to Austrian law.

The Joint Lead Managers were advised on German law matters by Allen & Overy Frankfurt, the Issuer was advised by Wolf Theiss.

The Austrian DCM practice of Rautner Rechtsanwälte advises investment banks as well as issuers on national and international capital market transactions with a focus on bonds, issuance programmes and regulatory matters.