Cemex refinances syndicated agreement, adds €300 million, extends to 2029

By Mary-Katherine Stinson

Lexington, Ky., April 11 – Cemex, SAB de CV refinanced its euro-denominated sustainability-linked syndicated credit agreement as part of a comprehensive financing plan designed to increase liquidity and flexibility, according to a press release and a 6-K filing with the Securities and Exchange Commission.

The final maturity of the term loan was extended to 2029.

The refinanced agreement includes a €450 million five-year amortizing term loan and a new €300 million four-year committed revolving credit facility. This represents a reduction of €50 million in the term loan.

The credit agreement is part of Cemex’s recently updated sustainability-linked financing framework, which is aligned to the company’s Future in Action strategy and roadmap and its goal to achieve a carbon-neutral economy. The company is already above the 2025 target of 50% and brings the company closer to its 2030 target of 85%.

“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. This transaction builds on that commitment by extending our euro maturities and adding new sources of liquidity,” Cemex chief financial officer Maher Al-Haffar said in the press release.

Six new lenders joined the refinanced syndicated credit agreement.

The refinanced credit agreement has nearly identical terms and conditions to those in Cemex’s other main dollar-denominated bank credit agreement dated Oct. 30, 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.

The joint bookrunners and joint lead arrangers are Citibank NA, BNP Paribas, ING Bank NV, BBVA Mexico SA, Mizuho Bank Ltd, HSBC Continental Europe, Sumitomo Mitsui Banking Corp. and Bank of Nova Scotia. BBVA Mexico also serves as the sustainability structuring agent.

The agreement is guaranteed by Cemex Concretos, SA de CV, Cemex Operaciones Mexico, SA de CV and Cemex Innovation Holding Ltd.

Cemex is a building materials company based in Monterrey, Mexico.

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