Holcim issues first sustainable bonds
Holcim has issued two bonds in Swiss francs that focus on sustainability and climate protection. By 2025, the building materials company wants to achieve more than 40 percent sustainable financing contracts. If Holcim does not meet its climate target, investors are entitled to a higher coupon.
Holcim has issued two bonds in Swiss francs that are geared towards sustainability and put climate protection at the heart of the financing strategy. The bonds raised CHF 325 million and CHF 100 million, with maturities in 2026 and 2032 and carrying an annual interest rate of 0.35 and 0.90 percent, respectively.
If Holcim does not achieve its climate target, investors are entitled to a higher coupon. "We are proud to be the first company to issue a sustainability-related bond on the Swiss franc market," CFO Géraldine Picaud is quoted as saying in a company statement. "The bond has attracted new ESG investors who have demonstrated their confidence in Holcim's financial strength, strategy and ability to achieve sustainability goals."
With the current transactions, Holcim is expanding its global leadership position in this area. To date, the company has concluded around 6.7 billion in sustainable financing agreements. This current transaction represents a significant step on the way to more than 40 percent sustainable financing contracts as part of "Strategy 2025 – Accelerating Green Growth".
This was Holcim's third transaction in the Swiss public bond market in the last ten months. They allowed the company to raise a total of 1.1 billion Swiss francs.