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Holcim launches first sustainability-linked bonds in Swiss franc market

Published by , Deputy Editor
World Cement,

Holcim has successfully issued two sustainability-linked bonds in the Swiss franc market, with climate action at the heart of its financing strategy. The bonds raised CHF 325 million and CHF 100 million, with maturities in 2026 and 2032 respectively at a cost of 0.35% and 0.90% per annum.

Géraldine Picaud, Holcim CFO: “We are proud to be the first company to launch a sustainability-linked bond on the Swiss franc market. The bond attracted new ESG investors, demonstrating their confidence in Holcim’s financial strength, strategy and ability to deliver our sustainability targets.”

This transaction adds to Holcim’s global leadership in this area with around CHF 6.7 billion in sustainable financing agreements to date. It represents a significant step on the company’s journey to reach more than 40% of sustainable financing agreements as part of its ‘Strategy 2025 – Accelerating Green Growth’, with sustainability at the core of the company’s strategy. Investors will be entitled to a higher coupon if the company does not achieve its climate objective.

ISS ESG, a leading ESG consultancy organisation, gave a second-party opinion validating the robustness, relevance and ambition of the company’s CO2 reduction target as part of the sustainability-linked financing framework updated in November 2021. ISS ESG’s experts confirmed the alignment of the framework with the Sustainability-Linked Bond Principles, which are published by the International Capital Markets Association (ICMA).

This transaction was the third access to the Swiss public bond market over the last 10 months, allowing the company to raise CHF 1.1 billion in total.

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European cement news