Chicago, Jan. 13 – HeidelbergCement AG priced €750 million of 3.75% senior sustainability bonds due May 31, 2032 (Baa2/BBB) on Friday, a market source noted.
The bonds priced at 98.744 to yield 3.915%, or at 123 basis points over mid-swaps. Guidance was in the 130 bps area.
The coupon is potentially subject to a step-up margin based on sustainability key performance indicators linked to net CO2 emitted tons of cementitious material. The rate steps up 15 bps per year if the first target is not met by Dec. 31, 2026 and then 35 bps if the second target has not been met by Dec. 31, 2030 with a maximum of 110 bps cumulative over the lifetime of the bonds.
The bonds may be called with a Bunds plus 30 bps make-whole premium.
BNP Paribas (billing and delivery), Citi, Commerzbank, ING, SEB and Standard Chartered Bank AG are the joint bookrunners.
The orderbook went above €3.4 billion.
Proceeds will be used for general corporate purposes.
The bonds will be listed in Luxembourg.
The issuer is a Heidelberg, Germany-based building supplies company.
| Issuer: | HeidelbergCement AG
|
| Amount: | €750 million
|
| Issue: | Senior sustainability bonds
|
| Maturity: | May 31, 2032
|
| Bookrunners: | BNP Paribas (billing and delivery), Citi, Commerzbank, ING, SEB and Standard Chartered Bank AG
|
| Sustainability adviser: | ING
|
| Coupon: | 3.75%
|
| Price: | 98.744
|
| Yield: | 3.915%
|
| Spread: | Mid-swaps plus 123 bps
|
| Call features: | Make-whole call at Bunds plus 30 bps
|
| Trade date: | Jan. 13
|
| Settlement date: | Jan. 20
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 130 bps area
|
| ISIN: | XS2577874782
|
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