A major step in the European steel industry is the issuance of the first green bond by the voestalpine Corporation which has bent over backward in all its endeavours. A total of EUR 500 million was raised through the debut green corporate bond by voestalpine. For the first time in the history of the European steel sector, it is being marketed featuring green bond(s). The Paper, which is of the issue of five years at a coupon rate of 3.75%, enjoyed great support from professional investors.
In the same vein, retail investors may also place orders within the ensuing period, from 26 September to 3 October 2024. The funds to be raised under this issuance will be used solely for eligible/ green financing purposes in respect of the company’s greentec steel initiative.
Within the steel manufacturing industry, voestalpine has always set the agenda for being environmentally efficient, and the greentec steel initiative represents one of the components for its forward strategy. By 2027, it is expected that voestalpine will launch an electric furnace powered by green energy to replace the conventional blast furnace system. This initiative is forecast to lessen the company’s harmful emissions by short of 30% at the close of 2029, hence officially naming greentec steel the largest environmental project in the history of Austria.
The Chairman of the Board of voestalpine AG Herbert Eibensteiner said that he was satisfied with an advance in market regulation as follows: ‘By placing the first green bond of the European steel industry, we are also taking the precedent on the capital market.’
The other member of the high-end and top management, and the Chief Operating Officer, to be specific, Gerald Mayer, focused on their Green Financing Framework which is in consonance with the International Capital Market Association (ICMA) guidelines. ‘As in the case of the very first green bond, the guidelines under this Framework, hence support for future green financing, are the be all and end all,’ stated Mayer.
The bond issuance aligns with voestalpine’s broader commitment to sustainability, as the company continues to set environmental benchmarks in the global steel industry.