Grupo Bimbo Raises $850 Million in Mexico’s Largest Ever Sustainability-Linked Bond Deal
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- The issuance is the food giant’s first ESG-labeled bond
- The two series include $680 million in 10-year bonds and $170 million with 3-year maturity
- Bonds are linked to Scope 3 Sustainability Performance Targets
Grupo Bimbo announces the successful issuance in the Mexican market of Sustainability-linked Bonds (Certificados Bursátiles) for a total amount of approx. $850 million dollars, which represents the largest corporate Sustainability-linked Bond in the history of the Mexican market, and the largest transaction so far during the year.
The issuance included two series: the first series of approx. $680 million dollars, with a 10- year maturity and a 9.24% annual fixed rate; the second series of approx. $170 million dollars, with a 3-year maturity and an annual floating rate of 28-day TIIE +0.10%.
The Company will use the proceeds from this offering primarily to repay bank debt, to continue strengthening its financial flexibility.
See related article: Neoenergia Lands $155 Million Sustainability-Linked Loan From World Bank’s IFC
The bonds are linked to Sustainability Performance Targets aligned to the net zero-carbon emission strategy of Scope 3, which accounts approximately for 90% of Grupo Bimbo’s carbon footprint. The Company obtained a second-party pinion (SPO), who rated the Sustainability Performance Targets of this issuance as material and relevant, according to market standards.
“We tapped the Mexican market once again, this time through our first ESG- labeled bond, ranking the fifth SLB for Scope 3 globally and the first in Latin America, in line with our ambitious global long-term sustainability strategy. This transaction strengthens our financial position while reaffirming our sustainability commitments, specifically our undertaking to become a net zero-carbon Company by 2050”, said Diego Gaxiola, CFO of Grupo Bimbo.