Developments of Communications for the Austrian and CEE Corporate Bond Market

Trimedia Communications Stephan Neisser Head of Centre of Excellence Finance, Trimedia Communications Austria 5 years in communications business, specialised on financial communications 7 years in investment banking in London and Vienna University degrees of the Vienna Business University and the California State University of Hayward

About Trimedia Trimedia Communications one of the leading PR agencies in Europe The company was founded in 1981 and employs more than 400 people Offices in 26 European cities (Austria, Belgium, France, Germany, Italy, Netherlands, Portugal, Spain, Sweden, Switzerland, and Great Britain) and a worldwide network

Corporate Bond Market in Austria Corporate bond market has been growing enormously since 2000 –Number of listings more than four times increased –Raised volume by more than 200 times 2005 app. EUR 4bn Four major groups –Big Austrian companies such as Wienerberger, Wiener Städtische, Spar, A-Tec, Telekom Austria –Real estate companies such as Meinl European Land –Medium-sized business (mainly subsidised by Austrian government) –Special group of state owned companies with top ratings such as ASFINAG and ÖBB

Communications for corporate bonds in Austria Very often first time of relationship with the financial community Recommended activities of communications range from nearly nothing to the full number (like IPO) In fact: communications activities are on a very low basis Mainly institutional investors are target group Real estate companies overflow the markets with their capital raises and bond issues (communications problem) Bond issues of medium-sized companies are usually too small for public interest

State owned companies or close relationship Very good rating Usually coming from the infrastructure sector (railway, highway, PPP-models) Necessary understanding of the public for financing (Lobbying) Good preparation for possible privatisation Showing their ability for private sector Enormous activities (up to roadshows to Asia)

CEE Corporate Bonds Market Participation of the EURO will further boost the corporate bond markets in CEE Czech Republic as biggest corporate bond market (due to high interest rates in the late 90s) Increasing business in Hungary (in 2004 nearly the same as issue of government securities; mainly banks and MOL) Croatia has been increasing from nearly nothing in 2004 Poland has no activities in corporate bonds

Resume As corporate bond markets are absolutely on the upswing, communications for corporate bonds are really at the beginning Corporates usually have nobody within the communications department taking care of bond issues External pr agencies usually are not mandated PR agencies themselves have no experts in this area Journalists do not pay very much attention on corporate bonds

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