• • • First bond of its kind in the building materials industry
    • The bond demonstrates the commitment of LafargeHolcim to reach its 2030 CO2 reduction target
    • Issue was heavily over-subscribed, displaying investor appetite for this product and confidence in the ability of LafargeHolcim to meet its sustainability targets

Linklaters has advised LafargeHolcim, the global leader in building solutions, on its inaugural €850 million sustainability-linked 0.5% bond due 2031, which was issued on 23 November 2020. It is the first bond in the building materials industry aligned to the International Capital Markets Association’s (ICMA) Sustainability-Linked Bond Principles, published in June 2020.

Ben Dulieu, Capital Markets Partner at Linklaters, said:

“We know from working together for many years how important environmental factors have been to LafargeHolcim and are delighted to help the company further embed sustainability in its financing strategy. The emergence of sustainability-linked bonds as a new asset class is a welcome development for the capital markets and one we are proud to be associated with.”

Bond investors will be entitled to a higher coupon should the company not meet its sustainability objective, incentivising LafargeHolcim to reach its target of 475 kg net CO2 per ton of cementitious material by 2030.

The issuance by LafargeHolcim of a sustainability-linked bond linked to key performance indicators (KPIs) which impacts pricing terms if such KPIs are not met follows the first issuance of its kind by Enel in October 2019.

Earlier this year Linklaters also advised the managers on debut sustainability-linked bonds by Novartis and Suzano, which were the first bonds of their kind to be aligned with the ICMA’s Sustainability-Linked Bond Principles published in June 2020.

Linklaters’ involvement in these innovative transactions draws on the firm’s market-leading expertise across its global capital markets, corporate, environment and climate change, energy and financial regulation practices.

The Linklaters team was led by Ben Dulieu (Partner, Capital Markets) and supported by Amrita Ahluwalia (Managing Associate, Capital Markets) and Darren Chew (Associate, Capital Markets).