Cemex announces successful pricing of sustainability-linked long-term notes

The Notes consist of two tranches: the first, for an amount of 1 billion Mexican pesos with a 3-year tenor at a floating annual interest rate of TIIE 28 plus 0.45 %, and the second, for 5 billion Mexican pesos with a 7-year tenor at a fixed annual interest rate of 11.48%. The Notes are guaranteed by Cemex Concretos, S.A. de C.V., Cemex Operaciones México, S.A. de C.V., Cemex Corp. and Cemex Innovation Holding Ltd.

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% 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 (the “Framework”). Morningstar Sustainalytics, a global leader in ESG research and data, issued a second-party opinion relating to this Framework. The Framework and second-party opinion are both available at: https://www.cemex.com/investors/debt-information/sustainable-finance

Read the article online at: https://www.worldcement.com/the-americas/05102023/cemex-announces-successful-pricing-of-sustainability-linked-long-term-notes/