Chicago, Nov. 13 – Heidelberg Materials Finance Luxembourg SA priced €750 million of 4.875% 10-year sustainability-linked bonds on Monday, according to an informed source.
The notes priced at 98.18 to yield 5.112%, or at mid-swaps plus 190 basis points. Alternatively, the notes priced at Bunds plus 236.6 bps.
Initial price talk was in the mid-swaps plus 215 bps to 220 bps area.
The coupon will be linked to the achievement of a reduction in scope 1 emissions per ton of cementitious material, with a first measurement in 2026 and a second measurement in 2030. The coupon will step up 15 bps per year starting on Nov. 21, 2027 to maturity and 35 bps per year if the target is not achieved starting with the interest period beginning Nov. 21, 2031. The maximum cumulative step-up is 160 bps.
The notes may be called early with a Bunds plus 35 bps make-whole premium and then there is a three-month par call option.
Deutsche Bank (billing and delivery), BNP Paribas, Danske Bank, IMI-Intesa Sanpaolo and Landesbank Hessen-Thuringen Girozentrale were the joint bookrunners.
The final order book was over €2 billion.
Proceeds will be used for general corporate purposes and to refinance upcoming maturities.
The bonds will be listed in Luxembourg.
A guarantee comes from Heidelberg Materials AG.
The issuer is a Heidelberg, Germany-based building supplies company. The company changed its name from HeidelbergCement AG in September 2022.
| Issuer: | Heidelberg Materials Finance Luxembourg SA
|
| Guarantor: | Heidelberg Materials AG
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| Amount: | €750 million
|
| Issue: | Sustainability-linked bonds
|
| Maturity: | Nov. 21, 2033
|
| Bookrunners: | Deutsche Bank (billing and delivery), BNP Paribas, Danske Bank, IMI-Intesa Sanpaolo and Landesbank Hessen-Thuringen Girozentrale
|
| Second opinion provider: | DNV
|
| Coupon: | 4.875%
|
| Price: | 98.18
|
| Yield: | 5.112%
|
| Spread: | Mid-swaps plus 190 bps, or Bunds plus 236.6 bps
|
| Call features: | Make-whole call at Bunds plus 35 bps; three-month par call
|
| Change of control: | Yes
|
| Trade date: | Nov. 13
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| Settlement date: | Nov. 21
|
| Ratings: | Moody’s: Baa2
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| S&P: BBB
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 215 bps to 220 bps area
|
| ISIN: | XS2721465271
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