Cemex Refinances Syndicated Loan for $3 Billion, Extends Maturity to 2028

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The signing of this credit agreement is a key part of the company’s comprehensive financing plan designed to increase its liquidity and flexibility.

The transnational cement company of Mexican origin, Cemex, said on Monday that it refinanced a syndicated loan for $3 billion, which meant extending its maturity to 2028.

The refinanced credit contract consists of a 5-year amortizable term loan for 1,000 million dollars, and a revolving credit, committed to 5 years, for 2,000 million dollars.

The above represented a reduction of 500 million dollars in the term loan and an increase of 250 million dollars in the revolving credit, compared to the previous contract.

The signing of the agreement is a key part of the company’s comprehensive financing plan, designed to increase its liquidity and flexibility.

Cemex said in a statement that the agreement, denominated exclusively in US dollars, maintains the same interest rate margin framework with financial ratio limits “consistent with an investment grade capital structure.”

This implied a maximum leverage ratio of 3.75 times over the life of the loan and a minimum interest coverage ratio of 2.75 times.

The cement company’s executive vice president of finance and administration, Maher Al-Haffar, said that the transaction was carried out in a volatile financial market, with rising interest rates.

“We managed to maintain the terms and conditions including the margin framework established in 2021, and at the same time increase the available revolving credit,” he stated.

The executive stated that now the company’s maturity profile is much more uniform, without significant pressure in any year.

Citigroup Global Markets Inc., BofA Securities Inc., BNP Paribas, JPMorgan Chase Bank, NA and Crédit Agricole Corporate participated in the Cemex refinanced credit agreement.

Also Investment Bank, ING Capital LLC, BBVA México SA, and Mizuho Bank Ltd.

The contract is part of Cemex’s recently updated Sustainability-Linked Financing Framework, which is aligned with the company’s “Future in Action” strategy and its vision of a carbon-neutral economy.