The proceeds from this issue will be used 100 percent to finance sustainable voestalpine projects, such as greentec steel. The bond, which has a term of five years and a coupon of 3.75 percent, can also be subscribed by private investors from September 26 to October 3, 2024, voestalpine announced on Wednesday.
“We are particularly pleased that we have been able to attract a prominent investor, the World Bank, for our issue,” said voestalpine CEO Herbert Eibensteiner. “The International Finance Corporation of the World Bank Group has invested around 75 Million Euro invested in our green bond.” The value date and start of trading of this green bond (ISIN AT0000A3FA05) on the Vienna Stock Exchange is scheduled for October 3, 2024.
Green steel from 2027
From 2027, voestalpine plans to partially convert its traditional blast furnace route to green energy-based electric arc technology and thus reduce its emissions by around 30 percent by 2029.
The two major construction sites in Linz and Donawitz are fully on schedule, reported Eibensteiner. In Linz, a 750-meter-long conveyor belt bridge has already been built for the new raw material supply. From the end of 2024, the hall for the new electric arc furnace will be built, as well as a so-called microtunnel for the new 220-kV power line, which will supply the electric arc furnace with green electricity from 2027.
At the voestalpine site in Donawitz, assembly of the hall and crane runways has begun. For the power connection, the construction site of the 220 kV switchgear will be completed and handed over to APG (Austrian Power Grid), which is to carry out the further construction work by 2026.