EQS-News: VERBUND successfully places new EUR 500 million Green Bond including biodiversity

EQS-News: VERBUND successfully places new EUR 500 million Green Bond including biodiversity

EQS-News: VERBUND AG / Key word(s): Bond/Issue of Debt
VERBUND successfully places new EUR 500 million Green Bond including

21.05.2024 / 11:00 CET/CEST
The issuer is solely responsible for the content of this announcement.


VERBUND AG, Austria’s leading utility company, has taken another step in
its long-standing green finance strategy and successfully issued a green
bond including biodiversity. The green bond including biodiversity for EUR
500 million with a term of 7 years was extremely well received by the
investor community in a competitive environment and was therefore
oversubscribed more than 6 times at the peak. The high demand made it
possible to set the interest rate at an attractive level of 3.250%.

VERBUND intends to use the net proceeds from the issuance of the bond for
green projects that are in line with the VERBUND Green Financing
Framework, updated in May 2024. The green financing framework was examined
by the internationally renowned sustainability rating agency ISS ESG and
provided with a second party opinion (available at [1] www.iss.esg.com),
which confirms compliance with the EU taxonomy (from November 2022), the
Green Bond Principles 2021 (with appendix from June 2022) and the EU Green
Bond Standards.

VERBUND intends to use up to 90% of the proceeds from the bond to finance
the construction of the 380 kV Salzburg high-voltage line (Salzburg line).
The Salzburg line is a key section of the 380 kV high-voltage ring in
Austria, which forms the basis of the country’s electricity supply and is
therefore of great importance for regional, national and European supply
security. With the Salzburg line, which leads to a significant increase in
the east-west transport capacity within Austria, the renewable energies
generated in eastern Austria can be transported to the pumped storage
power plants in western Austria. In this way, the management contributes
to the implementation of the Austrian energy strategy and to achieving the
Austrian climate protection goals.

In addition, VERBUND intends to finance the projects “LIFE Riverscape
Lower Inn” and “LIFE Project Blue Belt Danube Inn” (the “Biodiversity
Projects”). The biodiversity projects are part of the VERBUND program to
improve ecology and biodiversity around hydropower plants in Austria and
Bavaria (Germany). An essential design feature of such concepts are bypass
rivers, which restore continuity and at the same time provide important
habitats for fish, amphibians, water-bound birds and many other rare river
meadow species. After completion of the biodiversity projects, the
continuity of the VERBUND power plants on the Danube and Inn shall be
fully ensured.

In the past, VERBUND has achieved several milestones in the field of Green
Finance: The first Corporate Green Bond of a DACH company in 2014, the
world’s first digital “Green Schuldschein loan” and an ESG-linked
syndicated loan in 2018, a “Green & Sustainability-linked Bond” in line
with the EU Taxonomy in 2021, as well as an ESG-linked promissory note in
2022 and a Sustainability-linked syndicated loan in 2023.

 Important Notice

These materials are not for distribution or release, directly or
indirectly, in or into the United States (including its territories and
possessions, any State of the United States and the District of Columbia),
Australia, Canada, Japan or any other jurisdiction in which such
distribution or release would be unlawful. These materials do not
constitute or form a part of any offer or solicitation to purchase or
subscribe for securities in the United States, Australia, Canada or Japan,
or any other jurisdiction in which such offer or solicitation may be
unlawful. The securities mentioned herein have not been, and will not be,
registered under the US Securities Act of 1933, as amended (the
“Securities Act”). The securities may not be offered or sold in the United
States, absent registration or an exemption from the registration
requirements of the Securities Act. There will be no public offer of the
securities in the United States.

This publication does not constitute an offer to sell or the solicitation
of an offer to purchase securities of VERBUND AG. The securities have
already been placed.

Contact: Andreas Wollein
Head of Group Finance and Investor Relations
T.: +43 (0)5 03 13 – 52604
F.: +43 (0)5 03 13 – 52694


21.05.2024 CET/CEST This Corporate News was distributed by EQS Group AG.


Language: English
Am Hof 6A
1010 Wien
Phone: 0043-1-53113-52604
Fax: 0043-1-53113-52694
E-mail: investor-relations@verbund.com
Internet: www.verbund.com
ISIN: AT0000746409
WKN: 877738
Indices: ATX
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1907667

End of News EQS News Service

1907667  21.05.2024 CET/CEST


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