In May, UniCredit Bank Austria successfully placed its first Green Covered Bond on the capital market, reaching another milestone in its sustainability journey. UniCredit Bank Austria’s Green Covered Bond had a total volume of €500 million and a maturity of 6 years, issued under UniCredit Group’s Sustainability Bond Framework. Proceeds from this and future bonds will be used to support local eligible green projects.
The demand for UniCredit Bank Austria’s green bond was high and the book-building process reached a total amount of €1.3 billion with the order book oversubscribed multiple times. The green bond has a triple A rating from Moody’s and was issued to institutional investors. The investor base was composed of 54 investors, with 39% in Germany, 20% in Austria, 12% in Benelux and the remainder well diversified across other countries and regions.
The commitment to the energy transition and sustainable business practices is bringing about a fundamental change in society and influencing every single area of our lives.
As a bank, we have a central role to play in the transition to a low-carbon economy. Channelling the flow of funds into promising, climate-friendly industries, activities and initiatives is and will be the central joint challenge of the future.
CEO of UniCredit Bank Austria
The bond proceeds will be used for the financing or refinancing of green buildings registered in UniCredit Bank Austria’s mortgage cover pool and which comply with the eligibility criteria specified in the Group Sustainability Bond Framework. UniCredit Bank Austria was mandated as Sole Green Structurer and ING, LBBW, Natixis, Raiffeisen Bank International and UniCredit were Joint Lead Managers.
UniCredit Bank Austria’s Green Bond was a great success on the international capital market and it has been oversubscribed. We are very pleased about the high demand; this issue shows how much international investors are convinced by the sustainable journey the UniCredit Bank Austria is on and how high the continuing interest in sustainable financial products is.
CFO of UniCredit Bank Austria