voestalpine becomes first European steel company to place a green bond
September 25, 2024
voestalpine announced that it has successfully issued its first green corporate bond for €500 million, the entire proceeds of which will finance sustainable projects such as greentec steel. The bond is scheduled to start trading on the Vienna Stock Exchange October 3, 2024.
“voestalpine has been an environmental benchmark in the industry for decades, and has a clear plan to transform its steel production with greentec steel,” stated Herbert Eibensteiner, CEO. “As early as 2027, we will partially switch from the traditional blast furnace route to electric arc technology using green electricity, thereby reducing our emissions by around 30% by 2029. This makes greentec steel the largest climate protection programme in Austria. By issuing the first green bond in the European steel industry, we are now also taking on a pioneering role in the capital market.”
The bond has a term of five years and a coupon of 3.75%, and met with high investor demand. Private investors may also subscribe during the subscription period running from September 26 to its launch on the Vienna Stock Exchange.
Forming the basis of the bond is the recently released Green Financing Framework, reputedly the first of its kind for a European steel company. The Green Financing Framework was reviewed by the ESG rating and research agency Moody’s as part of a second party opinion. It was awarded a top rating (’very good’).
Gerald Mayer, CFO, explained, “Our Green Financing Framework fulfils the stringent requirements of the International Capital Market Association whose standards are considered best practice worldwide. Our framework for this first green bond and future green financing is the gold standard.”
