Leading in sustainable financing: Heidelberg Materials places Green Bond
On Thursday, Heidelberg Materials successfully placed its first Green Bond (ISIN XS2842061421) as part of its recently published Green Finance Framework. The issue volume amounts to €700 million with a term until 2034.
Heidelberg Materials is the first European manufacturer in the heavy building materials industry to issue a green bond. The range of projects financed by this bond spans from the modernisation of plants, for example to increase use of alternative fuels, to the expansion of carbon capture technologies. The Green Bond complements Heidelberg Materials’ sustainable financing portfolio and further increases the share of sustainable financial instruments. By 2025, the company aims to increase this share to over 70%.
The 2.5 times oversubscription of the bond demonstrates the confidence of the capital market in the Group’s sustainability strategy. The 10-year Eurobond has a fixed interest rate of 3.95% per annum. Joint bookrunners for the issue are BofA Securities, Citigroup (B&D), Commerzbank, ING, SEB, and Standard Chartered Bank.
“In addition to our two sustainability-linked bonds, we are now the first European manufacturer in the heavy building materials industry successfully issuing a green bond. This underlines our pioneering role in the decarbonisation of our industry,” said Chief Financial Officer René Aldach. “The introduction of our Green Finance Framework a few weeks ago has already attracted the interest of a broader investor base. With the bond just issued, we are responding to the increased demand.”
Heidelberg Materials’ Green Finance Framework is based on the latest version of the International Capital Market Association’s (ICMA) Green Bond Principles and the Loan Market Association’s (LMA) Green Loan Principles. ISS Corporate has provided a Second Party Opinion, validating the alignment with ICMA and LMA Principles, the consistency with the company’s sustainability strategy, and that the projects financed will positively contribute to achieving the UN Sustainable Development Goals. The framework also considers selected elements of the EU Taxonomy Regulation and the associated Delegated Acts as well as the EU Green Bond Regulation.
Heidelberg Materials’ Green Finance Framework and Second Party Opinion are available online at Sustainable Finance.
- About Heidelberg Materials
- Heidelberg Materials is one of the world's largest integrated manufacturers of building materials and solutions with leading market positions in cement, aggregates, and ready-mixed concrete. We are represented in around 50 countries with around 51,000 employees at almost 3,000 locations. At the centre of our actions lies the responsibility for the environment. As the front runner on the path to carbon neutrality and circular economy in the building materials industry, we are working on sustainable building materials and solutions for the future. We enable new opportunities for our customers through digitalisation.
This release does not constitute an offer to sell or a solicitation of an offer to buy securities of Heidelberg Materials AG.
This release does not constitute an offer to sell or a solicitation of an offer to buy securities in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. The securities described herein will not be registered under the Securities Act.
The information contained in this release may not be issued or distributed in or into the United States of America, Canada, Australia or Japan and does not constitute an offer to sell nor a solicitation of an offer to buy securities in the United States of America, Canada, Australia or Japan.
