BANK AUSTRIA this week priced its innovative partially funded securitisation of bonds from its investment book. Lead managed by Citibank and Salomon Smith Barney, the transaction achieves substantial regulatory capital relief for Bank Austria on $1.2bn of bonds originally bought by Creditanstalt, which merged with Bank Austria in September. "Bank Austria has no shortage of capital, but this deal is part of our strategy to ensure that we can develop the business while retaining more than adequate levels of capital," said Mark Bowles, senior director at Bank Austria in London. "We have very good skills as an ABS investor, and can originate this kind of assets effectively, but we want to reduce the capital they absorb."
December 11, 1998