Germany: HeidelbergCement has replaced its existing revolving credit line with a new syndicated credit line based on the Loan Market Association’s sustainability-linked loan principles (SLLP). HeidelbergCement says that key performance indicators of its progress towards sustainability objectives will determine the credit line’s credit margin, adjusted according to its CO2 emissions per tonne of cementitious material and alternative fuel (AF) substitution rate. HeidelbergCement says that its ‘solid financial base’ enabled it to reduce the syndicated credit line to US$2bn from US$3bn, and to avoid financial covenants.
Chief financial officer René Aldach said “With the conclusion of the new syndicated credit line, we have taken the first step towards sustainable financing. In addition, we were able to improve the terms and conditions compared with the previous credit line.”
