16 January 2023

Heidelberg Materials places first sustainability-linked bond

Heidelberg Materials has successfully placed its first sustainability-linked bond with an issue volume of €750mln and a term until 2032.

powdered cement
© HeidelbergCement AG

The company initially announced the issue of a bond linked to sustainability criteria at its Capital Markets Day 2022. Interest on the bond is linked to the development of specific CO₂ emissions per tonne of cementitious material up to 2026 as well as 2030, which are defined as key performance indicators in the Sustainability-Linked Financing Framework. Compared with the base year 2021, Heidelberg Materials aims to reduce specific CO₂ emissions by around 30% to 400kg per tonne of cementitious material by 2030.

The 10-year Eurobond has a fixed interest rate of 3.75% per annum. Joint bookrunners for the issue are BNP Paribas, Citigroup, Commerzbank, ING, SEB, and Standard Chartered Bank.

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