Verbund issues 6-year 500 million euro bond

4/8/2009Wien

On Wednesday, 8 April 2009, Verbund issued a 500 million Euro bond within the framework of a recently concluded EMTN program. Within two hours, the transaction was seven times oversubscribed and was concluded at extremely attractive rates.

The all-in interest rate for the bond with a six-year duration period amounts to 4.75 %. It is therewith even lower than the interest that Verbund attained for the 500 million Euro bond issued in 2007.

The bond was widely distributed among European investors, whereby 21 % of the bond was underwritten by Austrian investors, 39 % by German investors, 11 % by French investors, 
7 % by English investors and 6 % by Suisse Investors.

The EMTN program (European Medium Term Note) is a bond issuance platform. It opens up a volume of up to 3 billion Euro for Verbund. By means of EMTN, Verbund is able to have fast and cost-effective access to international capital markets at any time and can push ahead with its investment program in Austria and in the core foreign markets.

The strong rating of Verbund, the largest company in Austria to be listed on the stock exchange, was affirmed with an A1/stable outlook (Moody’s) and an A/stable outlook (Standard&Poors) upon the program’s issuance. Verbund therewith continues to count among Europe’s best-rated suppliers.

Verbund processed this first transaction via its central financing company VERBUND-International Finance B.V. Verbund will use the accruals from the bond to finance the expansion of hydropower and electricity grids in Austria, as well as its foreign activities.

The bond was arranged by Barclays Capital, the Deutsche Bank AG and the UniCredit (CAIB).

Contact

Andreas Wollein Andreas Wollein

Head of Group Finance, M&A and Investor Relations

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