Heidelberg Materials issue first Green Bond

Building materials specialist Heidelberg Materials issue groundbreaking Green Bond for sustainable construction projects

Heidelberg Materials have successfully placed the first Green Bond (ISIN XS2842061421) under their newly established Green Finance Framework. The bond raises €700 million (£591 million) and matures in 2034.

As the first European manufacturer in the heavy building materials sector to issue a Green Bond, Heidelberg Materials is leading the way in sustainable financing. The bond will fund a variety of eco-friendly projects, including modernising plants to increase the use of alternative fuels and expanding carbon capture technologies. This Green Bond enhances the company’s sustainable financing portfolio, with a goal to make over 70% of its financial instruments sustainable by 2025.

The bond’s 2.5 times oversubscription reflects strong market confidence in Heidelberg Materials’ sustainability strategy. The 10-year Eurobond carries a fixed annual interest rate of 3.95%. The joint bookrunners for this issue include BofA Securities, Citigroup (B&D), Commerzbank, ING, SEB, and Standard Chartered Bank.

René Aldach, Chief Financial Officer, stated, "We are proud to be the first European manufacturer in our industry to issue a Green Bond. This demonstrates our leadership in decarbonising the heavy building materials sector. Our new Green Finance Framework has already garnered significant interest from a wider range of investors. This bond addresses the growing demand for sustainable investment opportunities."

Heidelberg Materials’ Green Finance Framework adheres to the latest Green Bond Principles from the International Capital Market Association (ICMA) and the Green Loan Principles from the Loan Market Association (LMA). ISS Corporate has reviewed and provided a Second Party Opinion, confirming the framework’s alignment with ICMA and LMA principles, its consistency with the company’s sustainability strategy, and its contribution to the UN Sustainable Development Goals. The framework also aligns with key elements of the EU Taxonomy Regulation, the associated Delegated Acts, and the EU Green Bond Regulation.

Details of Heidelberg Materials’ Green Finance Framework and the Second Party Opinion are available online at Sustainable Finance.