Skip to main content

HeidelbergCement issues €1 billion Eurobond

Published by
World Cement,


HeidelbergCement priced a Eurobond issue under its €10 billion EMTN 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 3 times oversubscribed.

The 7-year bond bears a fixed coupon of 2.25% per year. The issue price is at 99.616%, resulting in a yield to maturity of 2.31%. These terms are the most attractive HeidelbergCement could ever secure in this maturity segment. Active Bookrunner of the transaction are Bank of America Merrill Lynch, Commerzbank, ING, Morgan Stanley (B&D) and Nordea.

The proceeds will be utilised for general corporate purposes and especially to pre-fund the upcoming Italcementi acquisition. Thereby the volume of the bridge financing will be reduced from €2.7 billion to the minimum volume required for the mandatory takeover offer of €2 billion. The refinancing needs in the bond market decline to below €1 billion in line with the issuance volume.

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.


Adapted from press release by Joseph Green

Read the article online at: https://www.worldcement.com/europe-cis/22032016/heidelbergcement-issues-billion-eurobond-738/

You might also like

Optimisation 2019

Optimisation 2019

Optimisation 2019 is an online conference for professionals in the cement sector. Since this is a completely virtual conference, you can join us from anywhere in the world, absolutely free Register for free today »

 

GCCA sets out case for concrete

The GCCA has set out the case for concrete and future world resilience needs at the World Built Environment Forum Summit.

 
 

Embed article link: (copy the HTML code below):