Republic of Austria Issues First Green Bond05.31.2022
As of today, the first green bond issued by the Republic of Austria is listed in the “Vienna ESG Segment” of the Vienna Stock Exchange.
By taking into account the Green Bond Principles of the International Capital Market Association (ICMA) as well as criteria of the EU taxonomy, the Republic of Austria follows the highest sustainability standards. The bond with a coupon of 1.85% matures on 23 May 2049. A total issue amount of EUR 4 billion was subscribed by institutional investors, the order book closed in excess of EUR 25.4 billion with 70% being green investors. The Federal Minister of Finance, Magnus Brunner, and the Managing Board of the Austrian Treasury, Markus Stix and Walter Jöstl, rang the bell for the stock exchange listing.
Ab heute notiert die erste grüne Bundesanleihe der Republik Österreich 🇦🇹 im „Vienna ESG Segment“. @magnusbrunner läutete dazu die traditionelle Börsenglocke in der Wiener Börse. Mehr Informationen: https://t.co/ZGP4I07rCx pic.twitter.com/kRRN2FQqi5
— Wiener Börse AG (@wiener_boerse) May 31, 2022
Finance Minister Magnus Brunner is delighted with the launch of the green bond on the Vienna Stock Exchange: “We are very pleased that the first green federal bond has now become a reality and is listed in the ‘Vienna ESG Segment’ of the Vienna Stock Exchange. We are convinced that this is the right way to go. The fight against climate change requires major investments. However, the state will not be able to act on its own in this area, private capital is also needed to achieve the goals. The new green bond is one of the instruments to meet this need. Among other things, the bond will help to finance the expansion of public transportation and renewable energy, as well as sustainable agriculture.”
The Managing Board of the Austrian Treasury, Markus Stix and Walter Jöstl, adds: “The stock exchange listing stands for transparency and is important for investors. The second party opinion of ISS ESG confirms that the proceeds of the federal securities are in line with the sustainability strategy and the Green Bond Framework.”
“We welcome the bond issued by the Republic of Austria to the new ‘Vienna ESG Segment’ of the Vienna Stock Exchange. Austria enjoys an excellent reputation among international investors,” congratulates Christoph Boschan, CEO of Wiener Börse, on the successful transaction and is convinced: “Strengthening the capital market makes Austria fit for the future in the long term: citizens increase their prosperity, companies finance innovation and the national economy achieves higher growth rates.”
Vienna ESG Segment ensures high transparency standards
The ‘Vienna ESG Segment’ of the Vienna Stock Exchange, which was launched two weeks ago, creates more transparency in the growing range of ESG-compliant bonds with a new rulebook. An external review (such as a rating or second party opinion) and ongoing disclosures increase the credibility of issuers. Investors benefit from enhanced transparency and visibility of securities.
Source: Vienna Stock Exchange
Solution enables financial firms to better determine ESG credentials for clients and their supply chains.
Federal regulators still lag behind some global counterparts which could adversely affect U.S. companies.
The EU Parliament’s report substantially extends the coverage of the label.
BNP Paribas Asset Management launched its first European ESG ETF Barometer survey.
The goal of carbon reduction has become a key focus for investors.