VERBUND AG: VERBUND successfully places EUR 700m EU Green Bond with strong investor demand and optimal pricing execution

The transaction was executed in a market environment characterized by elevated volatility and geopolitical uncertainty and was met with exceptionally strong demand from international investors. The EUR 700m Green Bond with a maturity of seven years was almost 5 times oversubscribed at peak demand.

The quality of the order book, combined with broad diversification across international real money investors, enabled a significant tightening of pricing guidance during the bookbuilding process, clearly demonstrating VERBUND’s strong pricing power. The bond was ultimately priced with an attractive coupon of 3.375% at the tight end of final guidance.

The successful placement not only reflects the capital market’s strong confidence in VERBUND’s credit quality, but also highlights the company’s ability to deliver transactions with a high degree of execution certainty and optimal pricing even in challenging market conditions.

VERBUND will allocate the net proceeds to finance green projects in line with its Green Financing Framework, updated in March 2026, and the EU Green Bond Factsheet. Both documents have been reviewed by the internationally recognized sustainability rating agency ISS Corporate and have received a Second Party Opinion as well as a Pre-Issuance Review, confirming alignment with the EU Taxonomy, the Green Bond Principles 2025 (ICMA), and the EU Green Bond Standard.

The proceeds will primarily be invested in projects in Austria, including:

• Increasing electricity generation from renewable energy sources such as hydropower, wind power and solar energy,
• Enhancing transmission security and grid stability through investments in high-voltage networks, and
• Expanding electricity storage capacity, particularly in pumped storage hydropower.

These investments contribute significantly to the implementation of Austria’s energy strategy and to achieving national climate and decarbonisation targets.

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.

With this transaction, VERBUND once again underlines its leading position in the European green bond market and its ability to mobilise a deep and high-quality investor base while executing a disciplined, value-optimising pricing strategy—even in volatile market environments.

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