LafargeHolcim has successfully settled a €500 million perpetual hybrid bond at an initial fixed coupon of 3% with a non-call period of five years and a quarter. Investors have expressed a strong interest, with a total order book of above €5 billion.
Earlier this week, the group also recorded successful results with its tender offer on three outstanding euro series of notes, bearing interest from 4.75% to 5.875% and maturing from July 2019 to March 2020.
Both transactions reduce the financing costs of the group.
The company has reaffirmed its objective to strengthen its financial structure in line with the ‘financial strength’ value driver of Strategy 2022 – ‘Building for Growth’ and to reach a leverage* (net debt divided by recurring EBITDA) at 2.0 x or less by the end of 2019.
*before IFRS 16 and at constant 2018 FX.
Read the article online at: https://www.worldcement.com/europe-cis/08042019/lafargeholcim-launches-hybrid-bond/