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Issuing focus on
strengthening equity
structure
“When the experts are
agreed, the opposite
cannot be held to be
certain.“
BERTRAND RUSSELL
Volatile
environment
weakened income
from securities
Market leader with
respect to interest
rate derivatives
under management decreased over the year 2000, while the number of customers holding a
securities account with Investkredit rose by about 4%.
TREASURY.
REFINANCING. In 2001, long-term measures were implemented only in the first half of the year. The
refinancing transactions planned for the second half of 2001 were postponed to the beginning of
2002 as a result of the political events in the wake of 11 September and their significant impact on
the markets. Investkredit Bank AG floated a total of six issues. The largest transactions with a volume
of EUR 50 m each were one seven-year floating-rate FLORAX bond floated on the European capital
market and five-year index-linked notes. Investkredit’s issuing activities primarily focused on refinancing
transactions to strengthen the capital basis. For this
purpose, Investkredit floated three private placements
consisting of one EUR 20 m issue of a fifteen-year subordinated
bond and a EUR 30 m and EUR 15 m issue of twentyyear
supplementing capital bonds. In June, Investkredit International
Bank p.l.c. issued five-year floating-rate notes
with a volume of EUR 10 m on the Austrian capital market.
For the current year it is planned to establish a refinancing
facility of EUR 1.5 bn. Since it is generally believed that
in the first half of 2002 investors will commit their funds
preferentially to bonds, Investkredit is stepping up its refinancing
activities in the beginning of the year. In January
2002, Investkredit floated its hitherto largest bond issue with
a volume of USD 500 m and a five-year maturity on the international capital market under the lead
management of the Schroeder Salomon Smith Barney Group.
SECURITIES MANAGEMENT. Securities management involves both own-account trading and the
construction of a medium- to long-term investment portfolio consisting mainly of asset backed securities.
In the year 2001 as well, Investkredit focused on the euro capital market and on the economic
area of the United States. Trading activities naturally concentrated on liquid bond markets and
shares from Western European countries. In 2001, the contributions to results were lower than in the
years before.
INTEREST RATE AND CURRENCY MANAGEMENT. In the financial year 2001, the high volatility of
the financial markets provided the trading desks of banks and financial departments of corporates
with great opportunities, but also confronted them with increased risks. Investkredit’s treasury department
was able to hedge the bank’s risks arising from interest and exchange rate fluctuations and
achieved a positive trading result, which proved to be rather volatile in the course of the year in line
with the general market development. In the sphere of short-term money trading, the scenario of
falling interest rates contributed very favourably to the bank’s net interest income. Investkredit’s corporate
customers increasingly relied on the bank’s market expertise and special know-how regarding
the use of short- and long-term interest rate and currency management tools to implement
hedging and optimisation strategies. Investkredit’s leading position with respect to interest rate
derivatives and its market share of 27% (TOP 2000, Schwabe, Ley & Greiner) document the bank’s
competence in this market area. At the Alpbach Finance Symposium in October, Investkredit’s treasury
department participated in the interest and exchange rate forecast and presented optimisation
strategies for foreign currency funding of corporates at one of the special seminars held on this
occasion.
Corporates
THE BANK FOR CORPORATES
31