CEMEX takes the lead in “green” financing and successfully extends Facilities Agreement

• Facilities Agreement becomes one of the largest sustainability-linked loans in the world, incorporating “green” metrics in about U.S.$3.2 billion of commitments.
• Lenders representing approximately 93% of Facilities Agreement supported extension of about U.S.$2.1 billion.

CEMEX, S.A.B. de C.V. (“CEMEX”) (NYSE: CX) announced today that it has successfully closed the amendment process under its facilities agreement, dated as of July 19, 2017, as amended and restated from time to time (the “Facilities Agreement”), entered into with several financial institutions.

As part of this amendment to the Facilities Agreement, CEMEX is extending approximately U.S.$1.1 billion of term loan maturities by 3 years, from 2022 to 2025, and approximately U.S.$1.1 billion of commitments under the revolving credit facility by 1 year from 2022 to 2023. In addition, CEMEX will prepay about U.S.$530 million corresponding to the July 2021 amortization under the Facilities Agreement to those institutions participating in the extension. This transaction improves CEMEX’s debt profile resulting in no relevant debt maturities through July 2023.

Under the amendment, CEMEX is also redenominating approximately U.S.$313 million of previous U.S. Dollar exposure under the term loans that are part of the Facilities Agreement to Mexican Pesos, as well as close to U.S.$82 million to Euros. Aside from the new Mexican Pesos tranche, which includes a lower interest rate margin grid, pricing for all other tranches is unchanged.

Aligned with CEMEX’s Climate Action strategy and the company’s ultimate vision of a carbon-neutral economy, tranches under the Facilities Agreement amounting to approximately US$3.2 billion will incorporate five sustainability-linked metrics, including reduction of net CO₂ emissions per cementitious product and power consumption from green energy in cement, among other indicators. The annual performance in respect to these five metrics may result in a total adjustment of the interest rate margin under these tranches of up to plus or minus 5 basis points.

“We are pleased with this transaction, which allows us to improve our debt maturity profile and underscores CEMEX’s commitment to sustainability as one of our key strategic pillars,” said Maher Al-Haffar, CEMEX’s Chief Financial Officer. “We are especially proud that this transaction represents one of the largest sustainability-linked loans in the world, and we would like to take this opportunity to thank our bank syndicate for their continued support.”

Along with other technical amendments, CEMEX tightened its consolidated leverage ratio covenant under the Facilities Agreement from 7.00x to a limit of 6.25x for the periods ending on September 30, 2020, December 31, 2020 and March 31, 2021.