Heidelberg Materials place first Green Bond
Company leading the way in sustainable financing as part of its Green Finance Framework
ON Thursday 13 June, Heidelberg Materials successfully placed their first Green Bond as part of their recently published Green Finance Framework, making them the first European manufacturer in the heavy building materials industry to issue such a bond.
The issue volume amounts to €700 million with a term until 2034, with the range of projects financed by the bond spanning from the modernization of plants, eg 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 more than 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.
‘In addition to our two sustainability-linked bonds, we are now the first European manufacturer in the heavy building materials industry to successfully issue a green bond. This underlines our pioneering role in the decarbonization of our industry,’ said Heidelberg Materials’ 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 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.
