Grupo Acerero Completes IDB-Baked Bond Issuance

Mexico-based steel producer and distributor Grupo Acerero successfully issued two bond certificates totaling MXN$1.2 billion (US$59 million) on the Institutional Stock Exchange (BIVA). The issuance, which marks Grupo Acerero’s debut in the local capital markets, was backed by partial guarantees from the Interamerican Development Bank (IDB) Invest, covering up to 50% of the total amount.

The bonds include a three-year certificate for MX$500 million and a five-year certificate for MX$700 million. These issuances were granted an AA+ local credit rating by Moody's, HR Ratings, and PCR Verum, factoring in the IDB Invest guarantee. The raised funds will support the final stages of constructing a new plant designed to produce steel slabs from scrap metal, a project that is expected to create over 600 direct jobs.

The new facility will allow Grupo Acerero to improve its domestic supply chain by purchasing more scrap metal, which will contribute to making the company’s steel slab and plate production more sustainable. According to IDB and Grupo Acerero, the move is expected to boost local economic activity and increase the company’s capacity to meet growing market demands.

In addition to its bond issuance, Grupo Acerero is collaborating with IDB Invest to develop a sustainability strategy. This will provide a framework for the company’s future thematic bond issuances, aligned with the International Capital Markets Association (ICMA) Principles. The goal is to ensure Grupo Acerero is well-positioned to issue bonds that support sustainable development initiatives.

Furthermore, IDB Invest extended a reverse factoring line to Grupo Acerero, offering up to MXN$222 million in financing to small and medium-sized suppliers within the company’s value chain. This financing aims to improve access to capital for these suppliers, enabling them to operate under more competitive conditions.

This financing operation aligns with several United Nations Sustainable Development Goals (SDGs), including Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Responsible Consumption and Production (SDG 12), and Partnerships for the Goals (SDG 17), IDB Invest reports.