Verbund launched 840 Million Euro Bond

7/9/2009Vienna

Verbund launched an 840 million Euro bond within the framework of its EMTN program (European Medium Term Note program). The transaction was 6-times oversubscribed within a couple of hours.

The coupon for the bond with a ten-year duration amounts to 4.75 %; the issue price is 99,145 %.

The bond has been widely distributed among European investors, whereby 45 % of the bond has been underwritten by German investors, 15 % by Austrian investors, 12 % by French investors, 9 % by Spanish and Italian investors and 6 % by Swiss investors.

The strong volume and the high quality of the orderbook was characterized by 40% investmentmanager, 29% banks, 28% insurance and pensionfunds and 3% others.

The EMTN program is an emissions platform for bonds. It allows for a volume up to 3 billion Euro for Verbund. By means of EMTN, Verbund is able to quickly and cost-effectively access the capital market at any time and therewith boost the implementation of its investment program in Austria and in the core foreign markets.

The enormous success of the bond placement demonstrates the unwavering strength of investors' confidence in Verbund’s positioning as renewable energy supplier in Europe. This positioning is also confirmed by the good rating of Verbundgesellschaft, which is A1 with Moody's (credit watch) and A with Standard & Poor's (credit watch). Within the European utility sector, the rating of Verbundgesellschaft is among the best of all companies.

Verbund has processed yesterday the second transaction within the framework of the EMTN program via its central financing company VERBUND-International Finance B.V. Amongst others the amount will be used to finance the cash portion of the purchased 13 Bavarian hydropower plants for which Verbund signed a purchase contract with E.ON in June 2009.

The bond was arranged by BNP Paribas, Calyon CIB, Morgan Stanley and the Raiffeisen Zentralbank Oesterreich.