Austria’s Verbund bags EUR 500m from green bond issue

Austrian utility Verbund AG (VIE:VER) has raised EUR 500 million (USD 543.5m) in an oversubscribed green bond sale to support the construction of a new power line at home.

The offering was met with high investor demand and was oversubscribed more than six times, Verbund said on Tuesday. The bonds mature in seven years and bear an annual interest rate of 3.250%.

Up to 90% of the secured funding will be allocated for the construction of a 380-kV high-voltage line that will improve the security of supply in the city of Salzburg. The facility will help increase the delivery of renewable electricity generated in eastern Austria to pumped storage power plants in the western parts of the country.

The Salzburg line will be part of a high-voltage ring between Salzburg and St. Peter, Upper Austria.

The remaining proceeds will be used to support two biodiversity projects around hydropower plants in Austria and Bavaria, Germany.

(EUR 1.0 = USD 1.087)

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