LafargeHolcim launches first sustainability-linked bond for EUR850m

LafargeHolcim priced a EUR850m sustainability-linked bond on 17 November, with a coupon of 0.5 per cent maturing in 2031. This is the first bond of its kind in the building materials industry.  

Géraldine Picaud, CFO, said, "We are proud to be the first in our industry to launch a sustainability-linked bond. The order book of EUR2.6bn demonstrates the confidence of investors in the company’s financial strength, strategy and ability to deliver on its sustainability targets."

In addition, Magali Anderson, chief sustainability officer, said, "This announcement demonstrates the company's commitment to reach the most ambitious CO₂ reduction target of the industry for 2030. Today's bond issuance brings our ESG related funding agreements to CHF6bn (US$6.58bn)."

Bond investors will be entitled to a higher coupon should the company not meet its objective, incentivising LafargeHolcim to reach its target of 475kg net CO₂/t of cementitious material by 2030.