Mexican cement company Cemex said Thursday it closed a EUR750 million ($805 million) refinancing of a euro-denominated syndicated sustainability-linked loan (SLL).
Under the deal, Cemex extended the final maturity of the existing EUR450 million term loan to 2029 and added a EUR300 million revolving credit line that matures in 2028, according to a securities filing.
Cemex said the agreement represents a reduction of EUR50 million in the term loan while the revolver provides the firm with an additional source of liquidity, it added.
The deal’s terms and conditions are nearly identical to the $3 billion syndicated credit line the company signed in October last year, including a 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, the company said.
Citibank, BNP Paribas, ING, BBVA México, Mizuho, HSBC, SMBC and Scotiabank acted as joint bookrunners and joint lead arrangers. BBVA México was also the sustainability structuring agent.
In October 2022, Cemex said it signed a three-year sustainability-linked loan for €500 million.
Cemex has also obtained sustainability-linked financing from the bond market this year, raising MXN5.5 billion ($322 million) in February to pay down debt.