Heidelberg Materials successfully placed its first sustainability-linked bond (ISIN XS2577874782) with an issue volume of EUR750m and a term until 2032 via HeidelbergCement AG as part of the EUR10bn European Medium Term Note (EMTN) programme. The company had already announced the issue of a bond linked to sustainability criteria at its Capital Markets Day 2022.
Interest on the bond is linked to the development of specific CO₂ emissions per tonne of cementitious material up to 2026 as well as 2030, which are defined as key performance indicators (KPIs) in the Sustainability-Linked Financing Framework. Compared with the base year 2021, Heidelberg Materials aims to reduce specific CO₂ emissions by around 30 per cent to 400kg per tonne of cementitious material by 2030.
“The placement reinforces our aspiration to achieve the most ambitious climate targets within the industry and to increase the share of sustainable financial instruments to over 70 per cent by 2025,” said CFO René Aldach. “With the denomination of EUR1000, we are the only company on the capital market to date to also offer retail investors the opportunity to invest in sustainability-linked bonds."
