Austria Invites Banks to Heta Bond Tender
World Economy

Austria Invites Banks to Heta Bond Tender

Austrian authorities are inviting investment banks to pitch next week to become the dealer-arranger for a planned tender offer for €11 billion ($12.5 billion) of Heta Asset Resolution AG bonds, according to two people familiar with the matter, according to Bloomberg.
One or more banks may also be selected for the transaction next week, said the people, who declined to be identified because they aren’t authorized to comment in public. JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. are among the contenders for one of the biggest bond offers in Europe this year, the people said.
Heta is managing the remnants of Hypo Alpe-Adria-Bank International AG, one of the most damaging Austrian bank failures after the 2008 financial crisis. It has contributed to Austria losing two AAA credit ratings and is threatening the province of Carinthia with insolvency as the former Hypo Alpe owner guaranteed bonds exceeding four years of its tax revenue.
Austria’s parliament on Oct. 15 approved legislation under which the federal government can help fund a discounted purchase of Heta’s bonds. Under the law, a special purpose vehicle can make a public offer to buy the bonds if creditors waive their rights under the guarantee. The discount will be imposed on all debt holders if at least two-thirds of the creditors accept the deal, according to the law.
The biggest Heta creditor group, led by Germany’s Commerzbank AG and Pacific Investment Management Co., said the deal was “doomed to failure.”
The Austrian Finance Ministry and the Carinthian government declined to comment. JPMorgan spokeswoman Andrea Amereller, Citi’s Christoph Schlueter and Bank of America Merrill Lynch’s Victoria Garrod also declined to comment.

Short URL : https://goo.gl/8S9uzu
  1. https://goo.gl/8CbQp1
  • https://goo.gl/gsrQGI
  • https://goo.gl/pOBI9U
  • https://goo.gl/jGzgBr
  • https://goo.gl/YmYdYo

You can also read ...

Close to 40% of digital transformation initiatives will be supported by AI capabilities.
The digital economy in Asia-Pacific, or APAC, is expected to...
An electronic stock indicator of a securities firm in Tokyo.
As investors come to terms with the impending end of easy...
Most economists would agree that Italy needs faster economic growth if it is to resolve its public debt  and banking-sector problems in an orderly manner.
Italy’s economy is growing again, but it’s still the worst...
Maersk is expanding its competitive universe to include different types of companies.
The world’s largest container company will start looking for...
Lloyds Profits Miss Forecasts
Lloyds Banking Group PLC raised its 2017 dividend by 20% and...
CBs May Top Inflation Targets
Not only will central banks meet their inflation targets, they...
Pak Current Account Gap Widens
Pakistan’s current account deficit widened 28.74% on a month-...
NZ Says Pacific Trade Deal Will Boost GDP
New Zealand estimates a Pacific trade deal would boost its...