Cemex closes €750 million bank refinancing
Published by Evie Gardner,
Editorial Assistant
World Cement,
Cemex announced that it has successfully refinanced its Euro denominated sustainability-linked syndicated credit agreement, extending the final maturity to 2029.
The refinanced credit agreement consists of a €450 million 5-year amortising term loan, and a new €300 million 4-year committed revolving credit facility. This represents a reduction of €50 million in the term loan and an additional source of liquidity in the form of a revolver. 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, which is denominated exclusively in Euros, 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% and brings the company closer to its 2030 target of 85%.
The Joint Bookrunners and Joint Lead Arrangers under the Credit Agreement are Citibank N.A., BNP Paribas, ING Bank N.V., BBVA México S.A., Mizuho Bank Ltd, HSBC Continental Europe, Sumitomo Mitsui Banking Corporation and The Bank of Nova Scotia. The Sustainability Structuring Agent for the Credit Agreement is BBVA México S.A.
The Credit Agreement maintains its guarantor structure, which consists only of Cemex Concretos, S.A. de C.V., Cemex Operaciones México, S.A. de C.V., Cemex Innovation Holding Ltd.
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Read the article online at: https://www.worldcement.com/the-americas/15042024/cemex-closes-750-million-bank-refinancing/
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