HeidelbergCement issues EUR1bn

HeidelbergCement issues EUR1bn
29 November 2016

HeidelbergCement has priced a Eurobond issue under its EUR10bn EMTN programme with an issuance volume of EUR1bn and a maturity date of 7 February 2025. Demand was very high and the bond was oversubscribed several times, reported HeidelbergCement.

With this issue, HeidelbergCement tapped the capital market for the first time following the recent investment grade classification. The eight-year bond bears a fixed coupon of 1.50 per cent. The issue price is at 98.529 per cent, resulting in a yield to maturity of 1.694 per cent.

These terms are the most attractive HeidelbergCement could ever secure in this maturity segment, the company stated. Joint Bookrunners of the transaction are Banca IMI, BNP Paribas, Deutsche Bank and Morgan Stanley.

The proceeds of the transaction will be used for general corporate purposes and for the refinancing of the Eurobond maturing in January 2017.

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Tagged Under: HeidelbergCement