voestalpine Issues First Green Bond in European Steel Sector, Raising €500 Million for Sustainable Projects

voestalpine Issues First Green Bond in European Steel Sector, Raising €500 Million for Sustainable Projects

(IN BRIEF) voestalpine, a leading international steel and technology group, has successfully issued its first green corporate bond, raising EUR 500 million. The five-year bond, which offers a coupon of 3.75%, was met with high investor demand and will be open for private investors from September 26 to October 3, 2024. The proceeds will be used to finance sustainable projects, including voestalpine’s greentec steel initiative aimed at reducing CO2 emissions by 30% by 2029 through electric arc technology. This issuance marks the first green bond from a European steel company, following the introduction of voestalpine’s Green Financing Framework, which has been rated “very good” by Moody’s.

(PRESS RELEASE) LINZ, 26-Sep-2024 — /EuropaWire/ — voestalpine, the international steel and technology group, has made a significant move by issuing its first green corporate bond worth EUR 500 million. This bond, set with a five-year term and a coupon rate of 3.75%, garnered substantial interest from investors. Additionally, private investors are invited to participate in the subscription period from September 26 to October 3, 2024. The funds raised through this green bond will be dedicated entirely to supporting or refinancing voestalpine’s sustainability-focused projects, including its groundbreaking greentec steel initiative.

The official trading of the bond (ISIN AT0000A3FA05) is expected to commence on the Vienna Stock Exchange starting October 3, 2024.

Herbert Eibensteiner, CEO of voestalpine AG, emphasized the company’s long-standing leadership in environmental practices and its commitment to reducing emissions through the greentec steel program. “By 2027, we will begin transitioning from traditional blast furnace methods to electric arc technology powered by green electricity, which will help cut our emissions by 30% by 2029. This marks greentec steel as Austria’s largest climate protection initiative, and with the issuance of this green bond, we are further establishing ourselves as pioneers in both the steel industry and the capital markets.”

voestalpine’s green bond is built on its Green Financing Framework, which the company launched a few weeks prior to the bond issuance. Gerald Mayer, CFO of voestalpine AG, noted that the framework meets the high standards set by the International Capital Market Association, widely recognized as best practice globally. This framework, rated “very good” by the ESG rating agency Moody’s, sets a high bar for future green financing efforts within the company.

With this issuance, voestalpine has not only taken a major step towards sustainable steel production but has also positioned itself as the first European steel company to introduce a green bond, solidifying its leadership in both the environmental and financial sectors.

The voestalpine Groupvoestalpine is a globally leading steel and technology group with a unique combination of materials and processing expertise. voestalpine, which operates globally, has around 500 Group companies and locations in more than 50 countries on all five continents. The voestalpine Group has been listed on the Vienna Stock Exchange since 1995. With its premium products and system solutions, voestalpine is a leading partner to the automotive and consumer goods industries, as well as to the aerospace and energy industries. The company is also the global market leader in railway systems, tool steel, and special sections. voestalpine is committed to the global climate goals and has a clear plan for transforming steel production with its greentec steel program. In the business year 2023/24, the Group generated revenue of EUR 16.7 billion, with an operating result (EBITDA) of EUR 1.7 billion; it has around 51,600 employees worldwide.

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Media Contact:

Peter Felsbach
Head of Group Communications & Spokesman
Tel: +43/50304/15-2090
mediarelations@voestalpine.com

SOURCE: voestalpine AG