CEMEX has successfully refinanced its euro-denominated sustainability-linked syndicated credit agreement, extending the final maturity to 2029. The refinanced credit agreement consists of a EUR450m five-year amortising term loan, and a new EUR300m four-year committed revolving credit facility. This represents a reduction of EUR50m in the term loan and an additional source of liquidity in the form of a revolver.
According to the company, the signing of this agreement is an integral part of a comprehensive financing plan designed to increase liquidity and flexibility. “We have delivered on our commitment of strengthening our financial position, with much better liquidity and with no significant debt maturities in any given year,” said CEMEX CFO, Maher Al-Haffar. “This transaction builds on that commitment by extending our euro maturities and adding new sources of liquidity.”
The refinanced credit agreement has nearly identical terms and conditions to those in CEMEX’s other main bank credit agreement dated 30 October 2023, including guarantor structure, a parallel interest rate margin grid, and financial covenants that provide for a maximum leverage ratio of 3.75x throughout the life of the loan and a minimum interest coverage ratio of 2.75x.
With this transaction, CEMEX continues to increase the percentage of its debt aligned to its Future in Action programme, which is already above the 2025 target of 50 per cent and brings the company closer to its 2030 target of 85 per cent.
