Argos receives US$272m sustainability-linked loan
Colombia’s Banco de Bogotá has disbursed a US$272m sustainability-linked loan to Cementos Argos. The agreement allows a gradual reduction in interest rate subject to the cement producer’s compliance with two environmental indicators: net specific CO2 emissions and a supplier sustainability assessment. The loan has a repayment term of 60 months with a 24-month grace period.
Under the conditions of the loan, the cement company must reduce its Scope 1 net specific CO2 emissions to 523kg of CO2/t of cementitious materials by 2030.
In addition, Cementos Argos must evaluate the economic, social, government and environmental practices of its suppliers to identify gaps and opportunities for improvement in their management. This will apply in all regions where the cement company operates, ie Colombia, the Caribbean, Central America and the USA. Cementos Argos must also carry out an annual independent and external verification of performance and compliance levels with its goals.
“This new loan tied to ESG criteria does not It is not only a concrete advance in line with our sustainability strategy as a source of competitive advantage, but it also contributes to our debt profile and is a seal of confidence for our investors and other interest groups," said Felipe Aristizábal, Cementos Argos CFO.
“With this loan tied to sustainable performance, we ratify our commitment to accompany Colombian companies in their transition process towards a low-carbon economy; Cementos Argos is a benchmark company in sustainability recognized by S&P Global, we are proud to accompany them as financiers in their decarbonization process," said Isabel Cristina Martínez, VP of sustainability and corporate services at Banco de Bogotá.
