BBVA México accompanies Cemex in the reopening of its issuance of sustainability-linked long-term notes for MXN 5.5 billion

BBVA México participated as Lead Underwriter in the issuance of sustainability-linked long-term notes for Cemex, S.A. de C.B., on the local market. The reopening of this issue of SLBs references decarbonization targets linked to compliance with a scope 1 and 2 carbon emission metric.

The bonds, totaling MXN5.5 billion, were well received by the market, with a demand totaling MXN18.5 billion, equivalent to 3.4 times the amount placed. This is one of the highest bid-to-cover ratios for any issuance in recent years.

The deal went out in two tranches:

• A reopening of the Cemex 23L issue for MXN2 billion pesos, with a remaining term to maturity of 2.6 years at a floating rate pegged to the 28-day TIIE with a spread of 45 basis points (bp), 20pb below the initial price talk (IPT) shared with the market.

• A reopening of the Cemex 23-2L issue for MXN3.5 billion pesos, with a remaining term to maturity of 6.6 years at a rate of 136pb over the interpolated MBono 2029-31, resulting in an equivalent yield of 10.66%; 19pb below the initial price talk (IPT) shared with the market.

The two issues received a credit rating of AA(mex) from Fitch Ratings and mxAA from S&P Ratings. The net proceeds from the reopening of these issuances will be used to pay down debt, aiming to accelerate Cemex’s path to investment grade credit ratings.

Cemex is a global construction materials company committed to providing innovative and sustainable solutions for the industry, building a better future for all its stakeholders: employees, clients, shareholders, investors, suppliers and the communities where it operates.

In 2021, the company launched a Sustainability-Linked Financing Framework, which further aligned Cemex's corporate sustainability commitments with its financing strategy. In 2023, this framework was updated to align with Cemex's more ambitious decarbonization goals for 2030, which have been validated by the SBTi to align with its new 1.5°C scenario. The Framework is now linked with more aggressive scope 1 and 2 emission reductions in cement production. It is also linked to reducing Cemex’s 2030 clinker factor and increasing the use of alternative fuels with high biomass content.

BBVA Mexico congratulates Cemex on this successful deal and thanks it for entrusting us with the execution of this significant transaction. We reiterate our commitment to mobilizing resources to drive sustainable projects. To date, we have participated as lead underwriter in over 26% of ESG-labeled debt issuances in the local market.