CEMEX to Emit Green Bonds in February

CEMEX will issue sustainability-linked bonds in February 2024. The objective is to raise MX$4.5 million (US$265 million) through the reopening of two bonds initially placed on the Mexican Stock Exchange (BMV) in October 2023.

The bonds 'CEMEX 23L', set to mature in 2030, and 'CEMEX 23-2L', maturing in 2026, are both linked to sustainability metrics. CEMEX aims to tie at least 85% of its debt to sustainability goals by 2030, aligning with its commitment to environmental and social responsibility. “According to the Global Cement and Concrete Association (GCCA), the cement industry is the source of between 5 and 8% of the world's CO₂ emissions. We also know that our final product, ready-mix concrete, is the second most consumed material in the world, so it plays an essential role in the development of society. This is why we are committed to contributing to the mitigation of climate change by reducing CO₂ emissions in our production processes, as well as throughout the life cycle of our products,” states de company.

Casa de Bolsa BBVA México, HSBC Casa de Bolsa, and Scotia Inverlat Casa de Bolsa will serve as the placement intermediaries for these bonds. CI Banco is set to act as the common representative of the bondholders.

The funds raised through this issuance are earmarked for refinancing existing debt and general corporate purposes. This allocation aligns with CEMEX's objectives of accelerating growth and achieving a capital structure that qualifies for investment-grade status. As of now, CEMEX holds an "mxAA" rating from S&P Global Ratings and "AA(mex)" from Fitch Ratings, positioning both bonds within the third level of the local investment grade category.

CEMEX has set an over-allotment of up to 100% of the placement, potentially allowing the company to raise up to MX$9 billion with the reopening of both bonds. These bonds, initially issued for a total of MX$6 billion, signify CEMEX's return to the Mexican debt market after an absence of over 15 years. Both the October 2023 sale and the upcoming one in February are supported by a long-term revolving issuance program for up to MX$20 billion.