The new credit line replaces the building materials giant's existing revoilving credit line and has a term of five years with two one-year extension options.
HeidelbergCement says the voluntary SLLPs link credit lines to sustainability criteria, which are measured via defined key performance indicators (KPIs). The credit margin is based on the achievement of HeidelbergCement's climate targets and is adjusted depending on the CO2 emissions per tonne of cementitious material and the alternative fuel rate.
"With the conclusion of the new syndicated credit line, we have taken the first step towards sustainable financing," said René Aldach, chief financial officer of HeidelbergCement. "In addition, we were able to improve the terms and conditions compared with the previous credit line.
"We want to increase the proportion of sustainable financial instruments to over 70% by 2030."
The company says its solid financial base enabled it to reduce the syndicated credit line from €3bn to €2bn and to avoid financial covenants. The credit line serves as a liquidity reserve and can be used for cash drawdowns as well as for letters of credit and guarantees in euro and other currencies.
Twelve banks were mandated as bookrunners and mandated lead arrangers in this transaction: Bank of America, BNP Paribas, Citibank, Commerzbank, Danske Bank, Deutsche Bank, Helaba, ING, Intesa Sanpaolo, Morgan Stanley, SEB and Standard Chartered. Deutsche Bank acted as coordinator, BNP Paribas as sustainability coordinator. Deutsche Bank will continue to act as documentation and facility agent.
