CEMEX has announced the successful pricing on 3 October 2023 of its sustainability-linked long-term notes for an aggregate principal amount of MXN6bn (US$332.6m), a transaction that represents its return to the Mexican debt market after a 15-year absence. The closing of the offering is expected to take place today, 5 October 2023, subject to satisfaction of customary closing conditions.
The notes consist of two tranches: the first, for an amount of MXN1bn with a three-year tenor at a floating annual interest rate of TIIE 28 plus 0.45 per cent, and the second, for MXN5bn with a seven-year tenor at a fixed annual interest rate of 11.48 per cent. The notes are guaranteed by CEMEX Concretos, SA de CV, CEMEX Operaciones México, SA de CV, CEMEX Corp and CEMEX Innovation Holding Ltd.
According to the company, the net proceeds from this issuance will be used to pay down debt, and accelerate CEMEX’s growth strategy and pathway to an investment grade capital structure.
“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,” said Maher Al-Haffar, CEMEX CFO. “It also aligns with our objective to have 85 per cent of our debt linked to sustainability metrics by 2030.”
Certain financial terms of the notes are linked to compliance with the net carbon emissions indicator of Scope 1 and 2, in accordance with the provisions of CEMEX’s Sustainability-Linked Financing Framework.
