VERBUND AG issues first-ever EU Green Bond in Austria

Image source: Verbund


Following a strong market opening, supported by the announcement of a two‑week ceasefire between the US/Israel and Iran, VERBUND AG reopened the European primary market with offering a EUR 700 million Green Bond on 8th of April 2026, marking the first-ever issuance under the EU Green Bond Standard in Austria.

Client:
VERBUND AG

Product:
European Green Bond

  • Size: EUR 700 million
  • Tenor: 7 years
  • Final Spread: MS+62 bps
  • Orderbook: Peaked at EUR 3.4 billion and final orderbook of EUR 2.0 billion; highly granular with >150 investors
  • Coupon: 3.375%
     

Use of proceeds:
The net proceeds will be allocated to EU‑Taxonomy‑aligned projects under the updated VERBUND Green Financing Framework, including:

  • Expansion of renewable generation (hydro, wind, solar)
  • Grid stability and transmission security investments
  • Enhancement of electricity storage capacity, especially pumped‑storage facilities

 

 

 

 

 

 

 

 

 

 

Image source: Verbund

First ever EU Green Bond in Austria

After issuing the first ever green bond in Austria in 2014, Verbund again sets the pace of the Austrian bond market by issuing the first ever green bond under the EU Green Bond Standard.

Despite recent geopolitical volatility, VERBUND and the Joint Lead Managers opted for an intraday execution after a two‑year absence from the market. This approach proved highly effective, with the orderbook peaking at over EUR 3.4 billion. This enabled a substantial tightening from MS+100 bps to a final pricing of MS+62 bps, including a negative new issue premium of 3 bps – a strong testament to investor confidence.

With the successful issuance of our first EU Green Bond, we are setting another milestone in our green finance strategy. The strong oversubscription and attractive pricing impressively demonstrate the capital market's confidence in VERBUND, as well as our strong position in the European green bond market.”, Andreas Wollein; Director Group Finance & Investor Relations VERBUND AG.

“The transaction highlights VERBUND’s significant pricing power and represents a milestone on its secondary curve. This issuance reinforces VERBUND’s longstanding leadership in sustainable finance and demonstrates its ability to mobilize a high‑quality investor base even during volatile market conditions,” underlines Clemens Wallinger, DCM/ECM expert at Erste Group Bank AG.

About VERBUND

VERBUND is Austria’s leading energy company and one of the largest producers of electricity using hydropower in Europe. Around 100% of the company’s electricity generation comes from climate-friendly, renewable energy. VERBUND has a strong and well-established track record in green financing and is considered a pioneer in this field. Key milestones include the first corporate green bond in the German-speaking region in 2014, the world’s first digital green Schuldschein and an ESG-linked syndicated loan in 2018, a taxonomy-aligned green & sustainability-linked bond in 2021, as well as further innovative sustainable financing instruments in subsequent years.