By Mary-Katherine Stinson
Lexington, Ky., Oct. 4 – Cemex, SAB de CV returned to the Mexican market with an offering of Ps. 6 billion of sustainability-linked long-term notes in two tranches, according to a press release and a 6-K filing with the Securities and Exchange Commission.
The notes are guaranteed by Cemex Concretos, SA de CV, Cemex Operaciones Mexico, SA de CV, Cemex Corp. and Cemex Innovation Holding Ltd.
The notes consist of two tranches: a Ps. 1 billion three-year note at a floating annual interest rate of TIIE 28 plus 45 basis points and a Ps. 5 billion seven-year note with a fixed coupon of 11.48%.
Some of the notes’ financial terms are linked to compliance with the net carbon emissions indicator of scope 1 and 2, in accordance with Cemex’s sustainability-linked financing framework. Morningstar Sustainalytics issued a second-party opinion relating to this framework. The framework and opinion are both available at https://www.cemex.com/investors/debt-information/sustainable-finance.
“We are very pleased with this new issuance that not only marks the return of Cemex to the local capital markets after a long absence, but it also confirms our commitment to foster the development of a deep and liquid capital market in Mexico,” Cemex chief financial officer Maher Al-Haffar said in the press release. “It also aligns with our objective to have 85% of our debt linked to sustainability metrics by 2030.”
Proceeds will be used to pay debt and accelerate Cemex’s growth strategy and pathway to an investment-grade capital structure.
Cemex is a building materials company based in Monterrey, Mexico.
| Issuer: | Cemex, SAB de CV
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| Guarantors: | Cemex Concretos, SA de CV, Cemex Operaciones Mexico, SA de CV, Cemex Corp. and Cemex Innovation Holding Ltd.
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| Amount: | Ps. 6 billion
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| Issue: | Sustainability-linked long-term notes
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| Green adviser: | Morningstar Sustainalytics
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| Pricing date: | Oct. 3
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| Settlement date: | Oct. 5
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| Floating-rate tranche
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| Amount: | Ps. 1 billion
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| Maturity: | 2026
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| Coupon: | TIIE 28 plus 45 bps
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| Fixed-rate tranche
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| Amount: | Ps. 5 billion
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| Maturity: | 2030
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| Coupon: | 11.48%
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