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Cementos Chihuahua issues sustainability-linked bond
01/11/2022 Since 2 years

Mexican cement company Grupo Cementos Chihuahua (GCC), with operations in Mexico and the United States, announced the issuance of a sustainability-linked bond. The placement was listed in Singapore under New York law for USD 500 million and an interest rate of 3.614%. The bonds mature in 2032.

With the issuance, the company commits to a 22% reduction in CO2 emissions by 2030. In case of default, the interest rate will rise by 75 basis points.

The proceeds will be used to pay off outstanding notes and refinance bank debt. The surpluses will be used for general corporate plans. The strategy to achieve the reduction of CO2 levels includes among others a move away from coal, the use of natural gas, the increased use of alternative energies and the production of composite cements.

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