HeidelbergCement priced a Eurobond issue (ISIN XS1387174375) under its €10 billion EMTN (Euro Medium Term Note) 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 three times oversubscribed. The seven-year bond bears a fixed coupon of 2.25%/year. The issue price is at 99.616%, resulting in a yield to maturity of 2.31%. The company says thes
HeidelbergCement priced a Eurobond issue (ISIN XS1387174375) under its €10 billion EMTN (Euro Medium Term Note) 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 three times oversubscribed.
The seven-year bond bears a fixed coupon of 2.25%/year. The issue price is at 99.616%, resulting in a yield to maturity of 2.31%.
The company says 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) und 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,” says HeidelbergCement.
