Heidelberg Materials has successfully placed its third Green Bond, raising €600 million to further align its financing strategy with sustainability-driven investments. Issued under the company’s Green Finance Framework, the bond (ISIN XS3270897575) has a maturity in 2036 and marks the next step in Heidelberg Materials’ ongoing commitment to green financing.
Following two Green Bond issuances in June and September 2024 totaling €1.2 billion, the latest transaction reinforces the company’s focus on funding projects that support decarbonization and operational efficiency. Proceeds from the bond will be used to finance a broad range of eligible initiatives, including plant modernisation, increased use of alternative fuels, and the advancement of carbon capture technologies.
The issuance attracted strong investor interest despite a busy market environment. The order book peaked at nearly €3 billion, with the bond ultimately being 2.8 times oversubscribed. The 10.5-year Eurobond carries a fixed annual interest rate of 3.75%, reflecting market confidence in Heidelberg Materials’ financial performance and sustainability strategy.
Joint bookrunners for the transaction included BNP Paribas (B&D), Danske Bank, Deutsche Bank, Helaba, IMI–Intesa Sanpaolo, and Morgan Stanley.
Heidelberg Materials’ Green Bonds form a key pillar of its sustainable financing framework, supporting the company’s long-term ambition to lead the building materials industry toward carbon neutrality and a circular economy. With operations in around 50 countries and nearly 51,000 employees worldwide, the company continues to invest in innovative, low-carbon solutions to meet the evolving needs of the construction sector.
