Funding Strategy

Erste Group´s prime liquidity source is the large surplus of customer deposits the bank has due to its strong market position in Austria and the CEE countries where it is active.

Debt Structure as of 30.06.2021

The growing international activity of Erste Group led it to develop alternative sources to the classic primary funding through customer deposits. The bank employs a wide range of funding sources and programmes to meet the funding requirements of the Group, its subsidiaries and the Austrian savings banks. The bank is active in Austria and internationally as a private placement issuer as well as making public issues in varying currencies, maturities and structures. The largest portion within securitised debt is made up of mortgage covered bonds which represent ca. 40%, followed by senior and tier 2 notes. The mentioned seniorities constitute approximately 90% of outstanding bonds.

Increased MREL-related issuance leads to rise in stock of senior unsecured bonds  in H1 2021

Maturity Profile as of 30.06.2021

On the issue side, the current financial year began with the successful placement of a 10-year senior preferred note in the amount of EUR500 million at MS+55bps. In the second quarter, Erste Group issued its first Sustainability Bond. The 7-year senior preferred note with avolume of EUR 500 million was issued at MS+35bps.