ICBC contributes to 1.5 billion syndicated term loan to CEMEX for general corporate purposes and debt repayment (Linked to Project ID#97078 and #97081)

On October 29, 2021, Mexico's CEMEX secured financial close on a US$3.25 billion sustainability-linked, dollar-denominated, unsecured syndicated financing package. The financing consists of an amortizing term loan for 1.5 billion USD and a committed revolving credit line for 1.75 billion USD (captured via Project ID#97081). Bank of China Mexico, Bank of China Panama, and the Industrial and Commercial Bank of China's Panama branch all contributed an unknown amount to the 1.5 billion USD term loan. BoC's contribution is captured via Project ID#97078. ICBC's contribution is captured via Project ID#97080. Both loans carried a five year term and have unknown interest rates. However, being a "sustainability-linked" loan, the annual performance in respect to three metrics referenced in CEMEX's Sustainability-linked Financing Framework may result in a total adjustment of the interest rate margin of plus or minus 5 basis points. These involve reducing net CO2 emissions per ton of cementitious product, increasing power consumption from clean energy sources in cement, and relying more on alternate fuel sources. The first disbursement was registered on November 8, 2021, though it is unknow which of the loans provided this disbursement. The loan proceeds were both to be used primarily for repaying existing debts (refinancing), while about 600 million USD was to be used for general corporate purposes. The new facilities were, per a release from CEMEX, 25 basis points lower on average than that of the previous facilities agreement. The participants in the syndicate for the 1.5 billion USD term loan included the following: Bank of America; BNP Paribas; Banco Nacional de México (member of the Banamex financial group); JPMorgan Chase Bank; BBVA Mexico; Crédit Agricole Corporate & Investment Bank (CACIB); ING Bank, Dublin Branch; Mizuho Bank, New York Branch; Citizens Bank; Intesa Sanpaolo, New York Branch; Sumitomo Mitsui Banking Corporation (SMBC); Bank of China México; Bank of China Limited (Panama Branch); HSBC Mexico; Banco Santander; Société Générale; Banco Mercantil del Norte (member of Banorte); Crédit Industriel et Commercial, London Branch; City National Bank; Credit Suisse, New York branch; and Industrial and Commercial Bank of China Limited, Panama Branch. Bank of America Securities, BNP Paribas, Citigroup Global Markets, and JPMorgan Chase Bank participated as joint bookrunners and joint lead arrangers. ING Capital acted as the sustainability structuring agent for the credit agreement. CEMEX Concretos, CEMEX Operaciones México, Cemex Innovation Holding and CEMEX Corp. acted as guarantors. CEMEX Concretos, S.A. de C.V., CEMEX Operaciones México, S.A. de C.V., Cemex Innovation Holding Ltd., and CEMEX Corp make up the loan's "guarantor structure".

Additional details

1. There were 21 members of the syndicate that provided the 1.5 billion USD term loan. Because AidData does not know the exact amount each member of the syndicate contributed, it is assumed each made an equal contribution. 1.5 billion USD / 21 members = 71,428,571.43 USD. This is multiplied by two (because two branches of BoC participated), to get a total estimated transaction amount of USD 142857142.86. 2. It is assumed that, when it is reported that the "guarantor structure" is made up of what appear to all be CEMEX subsidiaries -- CEMEX Concretos, S.A. de C.V., CEMEX Operaciones México, S.A. de C.V., Cemex Innovation Holding Ltd., and CEMEX Corp -- the loan is collateralized against some assets held by, or equity in, these subsidiaries. This is due to the phrasing ("guarantor structure"), as well as the fact that non-English languages often use "guarantee" to refer to collateralization. 3. Skadden, Arps, Slate, Meagher & Flom – United States (New York), with banking and capital markets lawyers; GHR Rechtsanwälte AG (Zurich and Bern) and in-house lawyers advised the borrower. The lenders turned to Cleary Gottlieb Steen & Hamilton – United States (New York and Washington, DC) and Galicia Abogados (Mexico City). 4. CEMEX produces, distributes, markets, and sells cement, ready-mix concrete, aggregates, and clinker, as well as urban solutions

Number of official sources

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Number of total sources

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