HeidelbergCement issues EUR625m of debt certificates

HeidelbergCement issues EUR625m of debt certificates
15 January 2016

HeidelbergCement has successfully issued debt certificates in the amount of EUR625m, thereby further strengthening its financing structure. Due to high demand, it was possible to significantly increase the issue volume from initially EUR400mto EUR625m, the German building materials major highlighted.

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 per cent per annum and the floating tranche at 1.5 per cent per annum over six months Euribor.

Proceeds to pre-fund Italcementi acquisition
The proceeds will be utilised to pre-fund the upcoming Italcementi acquisition and thereby reduces the volume of the bridge financing from EUR3.3bn to EUR2.7bn. The refinancing needs in the bond market decline to below EUR2bn, correspondingly.

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

HeidelbergCement reiterated that 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, it added.

Published under Cement News