The bond sale, funding environmentally beneficial projects, follows Austria's first ever sale of green debt
last year . Austria, like a number of European governments including Germany and Italy, has now sold multiple green bonds.
Tuesday's deal also follows a flurry of borrowers who have sold green bonds in
recent weeks
, taking advantage of high demand for do-good assets
following wild bond market swings in March that challenged debt
sales.
Austria sold 3 billion euros of the green bond, maturing on
May 23 2029. This includes 250 million euros of bonds the issuer
kept on its own books and the bond was priced for a yield of
2.952%, the lead managers said.
Separately, Austria also raised 1.5 billion euros from a
conventional 30-year bond sale and retained another 500 million
euros of the issuance, the lead managers said. The 30-year bond
priced for a yield of 3.207%.
The green bond saw over 6.8 billion euros of demand and
the 30-year bond saw over 2.2 billion euros, one of the lead
managers said.
Austria hired Barclays, BofA, Deutsche Bank, Erste Group, JPMorgan and Morgan Stanley for the sale on Monday. (Reporting by Yoruk Bahceli; editing by Dhara Ranasinghe)
Messaging: yoruk.bahceli@thomsonreuters.com))