Client stories

Holcim issues first privately placed RegS $ Medium Term Note

We’re delighted to have continued our sustainable finance work with Holcim, acting as Active Bookrunner in their issuance of the first privately placed RegS $ Medium-Term Note in a Sustainability-Linked Bond format.

Building progress for people and the planet

Operating across 70 markets and four business segments, Swiss company Holcim is a global leader in innovative and sustainable building solutions. With the world changing, the Swiss company, which employs 70,000 staff, has redefined its purpose, aiming to make cities greener, build smarter infrastructure and improve living standards, while also working towards becoming a net zero company. Furthermore, Holcim is a world leader in recycling building materials, playing a key role in driving the circular economy.  

Holcim is also the first global building materials company to sign the “Business Ambition for 1.5°C” initiative with intermediate targets approved by the Science-Based Targets initiative (SBTi) in alignment with a net zero pathway.

Introducing sustainability into EMTN programme

As a leader in ESG matters within its sector and following investor feedback after their €850 million, 10-year bond in November last year, Holcim decided to extend their euro medium-term note (EMTN) programme to include Sustainability-Linked Bonds (SLB). NatWest stayed in close contact with Holcim during the updating of their EMTN programme and engaged early with investors to introduce the possibility of a privately placed RegS USD denominated sustainability linked transaction of Holcim, the first of its kind, later in the year. 

The close dialogue paid off, allowing Holcim and NatWest, which acted as Active Bookrunner, to smoothly execute the building firm’s 10-year $100 million SLB shortly after the updated EMTN programme was available.

The issuance, priced at a coupon of 2.240 %, and placed with a sole Japanese investor, embeds an ambitious one-time coupon step-up of 1.5%, which Holcim have to pay at redemption in case they don’t achieve their target of 475kg net CO2 per ton of cementitious material scope 1 by 2030 (vs 576kg in the baseline year 2018; a reduction by 17.5%).

NatWest and Holcim at the forefront of sustainable finance innovation

Katharina Rothboeck, Debt & Financing Solutions, NatWest, said: “We are delighted to have continued our sustainable finance work with Holcim and to have supported our customer with this first privately placed RegS $ MTN to be issued in SLB format, which demonstrates NatWest’s ambition to support innovative sustainable structures.

Eric Molland, Relationship Manager, NatWest, said: “This transaction is a very good example of how we put the whole of NatWest to work, servicing our customers with our Origination, MTN, Sustainable Finance and Debt & Financing Solutions teams collaborating seamlessly to help deliver this deal.”

Leila Sassi, Head of Sustainable Finance, Holcim, said: “We are very pleased with the successful outcome of this transaction, fully embedding ESG considerations into our capital structure, and in doing so demonstrating our ambition to be at the forefront of sustainable finance innovation.”

The information provided in this article has been prepared by National Westminster Bank Plc (NatWest) for information purposes only and is subject to change from time to time. The information and views expressed should not be treated as advice or a recommendation of any kind. NatWest makes no representation, warranty, undertaking or assurance of any kind (express or implied) with respect to the adequacy, accuracy, completeness or reasonableness of the information provided and disclaims all liability for any use you, your affiliates, connected companies, employees, or your advisers make of it. NatWest accepts no liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this material or reliance on the information contained herein. However, this shall not restrict, exclude or limit any duty or liability to any person under any applicable laws or regulations of any jurisdiction which may not be lawfully disclaimed.

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