GREEN FINANCING AHEAD!
With the first green bond in the European steel industry, voestalpine is playing a pioneering role and sending out a strong signal in terms of sustainability, environmentally compatible steel production and financing.
A whopping 500 million euros were taken out for a period of 5 years, a feat that attracted a great deal of interest from environmentally conscious investors. The International Finance Corporation (IFC) of the World Bank Group has invested 75 million euros in this bond, underlining the importance of such an initiative at the international level.
CAPITAL WITH A SUSTAINABLE EFFECT
What are green bonds? The so-called green bonds of voestalpine are based on the Green Financing Framework and are used exclusively to finance sustainable projects. The central project financed by the green bond is greentec steel. The greentec steel project of voestalpine is a three-step plan that makes a valuable contribution to the achievement of ambitious climate goals.
In an initial step, the voestalpine Group plans to replace two blast furnaces with two electric arc furnaces (EAFs) by the year 2027. As a result, carbon emissions will be reduced by around 30% by 2029, and the ambitious strategy envisages steel production with net-zero carbon emissions by 2050.
GETTING GOOD GRADES
The Green Financing Framework is a solid basis for the green bonds of voestalpine and was rated as very good grade by Moody's, the renowned rating agency. The International Capital Market Association (ICMA) requirements were fully met.
voestalpine did its homework, thus ensuring that its sustainable financing will not be an empty promise but will meet the highest international standards.
GREEN FUTURE
voestalpine is the first European steel company to demonstrate a genuine pioneering spirit with its green bonds and is setting new standards for sustainable financing in the European steel industry. By investing in the green bonds of voestalpine, investors can support the large effort that is being put into producing steel with significantly reduced carbon emissions.
We must not spare any costs or effort when it comes to the preservation of our planet. At voestalpine, innovation and environmental responsibility go hand in hand.
Stella Sustainable, Sustainability Expert