HeidelbergCement issues €625 million of debt certificates

HeidelbergCement has successfully issued debt certificates in the amount of €625 million, thereby further strengthening its financing structure. Due to high demand, it was possible to significantly increase the issue volume from initially €400 million to €625 million. The newly-issued debt certificates, with a maturity date of 20 January 2022, consist of two tranches: one tranche with a floating rate and the other with a fixed rate. The fixed rate tranche yields at 1.85% p.a. and the floating tranche at
January 18, 2016 Read time: 2 mins

674 HeidelbergCement has successfully issued debt certificates in the amount of €625 million, thereby further strengthening its financing structure.

Due to high demand, it was possible to significantly increase the issue volume from initially €400 million to €625 million.

The newly-issued debt certificates, with a maturity date of 20 January 2022, consist of two tranches: one tranche with a floating rate and the other with a fixed rate. The fixed rate tranche yields at 1.85% p.a. and the floating tranche at 1.5%/year over smonths Euribor.

The proceeds will be utilised to pre-fund the upcoming 726 Italcementi acquisition and thereby reduces the volume of the bridge financing from €3.3 billion to €2.7 billion. The refinancing needs in the bond market decline to below €2 billion, correspondingly.

Issuance of the debt certificates was secured with the assistance of Landesbank Baden-Württemberg, Landesbank Hessen-Thüringen, and Raiffeisen Bank International.

As already communicated in the announcement of the Italcementi acquisition, the bridge financing should be refinanced by free cash flow, the sale of production sites and the issuance of bonds. The reduction in the volume of bridge financing thus also reduces the need for refinancing in the bond market by the same amount.

Loading, Hauling & Excavation Quarry Products

For more information on companies in this article

Related Content

March 22, 2016

HeidelbergCement’s €1 billion Eurobond aids Italcementi acquisition

HeidelbergCement priced a Eurobond issue (ISIN XS1387174375) under its €10 billion EMTN (Euro Medium Term Note) programme with an issuance volume of €1 billion and a maturity date of 30 March 2023. The bond was issued at the upper end of the volume and the lower end of the coupon range. Demand was very high; the bond was more than three times oversubscribed. The seven-year bond bears a fixed coupon of 2.25%/year. The issue price is at 99.616%, resulting in a yield to maturity of 2.31%. The company says thes

January 10, 2017

HeidelbergCement’s new Eurobond issue

HeidelbergCement has priced a Eurobond issue (ISIN XS1549372420) under its €10 billion EMTN programme with an issuance volume of €750 million and a maturity date of 18 January 2021. The proceeds of the transaction will be used for general corporate purposes and the refinancing of upcoming maturities.

The four-year bond bears a fixed coupon of 0.500% per annum. The issue price is at 99.822%, resulting in a yield to maturity of 0.545%. Joint Bookrunners of the transaction are Bank of America.

boombox1

Highlighted Content

boombox2