- The Green Bond issue volume is €600 million, maturing in 2036.
- Previous Green Bonds in 2024 totaled €1.2 billion.
- The bond was 2.8x oversubscribed, with demand nearing €3 billion.
- The bond has a fixed interest rate of 3.75% per year.
Green Bond Details
Heidelberg Materials has issued its third Green Bond under its Green Finance Framework, with an issue volume of €600 million and a maturity date in 2036. This follows two previous Green Bond placements in 2024, which together amounted to €1.2 billion.
Investment Focus
The proceeds from these Green Bonds are allocated to various projects, including plant modernization efforts and the advancement of carbon capture technologies. These initiatives are part of the company's strategy to align sustainable finance with operational investments.
Market Response
The bond attracted strong investor interest, with the order book peaking close to €3 billion, resulting in the bond being 2.8 times oversubscribed. This indicates significant market confidence in Heidelberg Materials' growth and sustainability strategies.
Financial Terms
The 10.5-year Eurobond carries a fixed interest rate of 3.75% per annum. The joint bookrunners for this issue include BNP Paribas, Danske Bank, Deutsche Bank, Helaba, IMI-Intesa Sanpaolo, and Morgan Stanley.
