Austrian steelmaker Voestalpine AG has announced that it has issued its first green corporate bond for €500 million, which has a term of five years. The company has become the first European company to place a green bond.
According to the statement, the entire proceeds of the issue will be used to finance its sustainable projects, such as greentec steel, Voestalpine’s brand for carbon-reduced steel products.
“As early as 2027, we will partially switch from the traditional blast furnace route to electric arc technology using green electricity, thereby reducing our emissions by around 30 percent by 2029,” Herbert Eibensteiner, CEO of voestalpine AG, said.