Holcim, one of the world’s largest cement producers, has recalculated the Key Performance Indicators (KPIs) underpinning two Sustainability-Linked bonds (SLBs) that have target observation dates at the end of this year.
The recalculation highlights how methodological shifts can influence the likelihood of SPTs being met, depending on whether there is a disparity between new methods and the SLB methods of KPI calculation. AFII now rates Holcim’s 2025 Scope 1 carbon intensity target as Likely MEET and its freshwater withdrawal target as Currently MET.
We also find that Holcim’s bonds referencing the recalculated targets appear to trade largely in line with comparable instruments, suggesting the market is not assigning meaningful option value to the potential coupon step-ups.
Based in London, Jo leads AFII’s research and a global team supporting fixed income investors as they align their portfolios with climate and sustainability goals. She joined AFII after 18 years in fixed income markets at JPMorgan.
Based in London, Praha covers topics including but not limited to the just transition, sustainability-linked bonds and deforestation. He previously spent seven years in Lloyds Bank’s Debt Capital Markets team.
