Holcim Ltd (Switzerland) has successfully issued two sustainability-linked bonds in the Swiss franc market, with climate action at the heart of its financing strategy. The bonds raised CHF325m (US$355.1m) and CHF100m, with maturities in 2026 and 2032 respectively at a cost of 0.35 per cent and 0.90 per cent per annum.
Géraldine Picaud, Holcim CFO: "We are proud to be the first company to launch a sustainability-linked bond on the Swiss franc market. The bond attracted new ESG investors, demonstrating their confidence in Holcim’s financial strength, strategy and ability to deliver our sustainability targets."
This transaction adds to Holcim’s global leadership in this area with around CHF6.7bn in sustainable financing agreements to date. It represents a significant step on the company’s journey to reach more than 40 per cent of sustainable financing agreements as part of its “Strategy 2025 – Accelerating Green Growth,” with sustainability at the core of the company’s strategy.
Investors will be entitled to a higher coupon if the company does not achieve its climate objective.
This transaction was the third access to the Swiss public bond market over the last 10 months, allowing the company to raise CHF 1.1bn in total.
