Austria's Sustainability-linked Bond Market: A Snapshot

In 2023 we advised a client in connection with the issuance of the first sustainability-linked bond by an Austrian corporation placed among international institutional investors as well as Austrian retail investors. Its main feature is that the coupon for the last year of the term will increase if one or both predefined step-up events linked to the issuer's sustainability targets occur.

Gearing up for the sustainability-linked bond transaction

Generally speaking, sustainability-linked bonds are bonds whose financial and/or structural characteristics vary depending on the achievement by the issuer of predefined sustainability or environmental, social and governance objectives.