Are you tired of businesses putting profits over the planet? Look no further than Cemex, a global leader in sustainable building materials. In an unprecedented move, Cemex has set new standards for corporate finance with their Perpetual Green Hybrid Offering. This groundbreaking initiative not only benefits the environment but also demonstrates how responsible business practices can lead to financial success. Let’s dive into how Cemex is paving the way towards a more sustainable future through innovative financing strategies!

What is a perpetual green hybrid offering?

A perpetual green hybrid offering is a corporate finance product offered by Cemex that allows companies to invest in sustainable projects while also providing them with the stability of a fixed-income investment. The product is structured as a hybrid between a traditional bond and an equity investment, and offers investors the ability to receive interest payments as well as participate in the upside potential of the underlying projects.

The perpetual green hybrid offering is designed to meet the needs of companies who are looking to invest in sustainable projects but may not have the resources or expertise to do so themselves. By investing in the product, companies can access a broad range of projects that have been vetted by Cemex and are expected to generate positive environmental and social impacts. In addition, the product provides companies with the stability of a fixed-income investment, as well as the potential to participate in the upside potential of the underlying projects.

How will the proceeds be used?

The proceeds from the sale of the bonds will be used to finance sustainable development projects undertaken by Cemex. These include initiatives to reduce greenhouse gas emissions, improve energy efficiency, and develop renewable energy sources. The bonds will also be used to fund other sustainable development projects undertaken by Cemex, such as water conservation and waste management programs.

What are the benefits of this type of financing?

Cemex, a leading global building materials company, has set new standards for sustainable corporate finance with its perpetual green hybrid offering. The bonds are the first of their kind to be issued by a Mexican company and will help finance Cemex’s sustainable development projects.

The bonds have a seven-year maturity and an interest rate of 3.875%. They will be listed on the Luxembourg Stock Exchange and are eligible for inclusion in international environmental, social, and governance (ESG) indices. The proceeds from the bond issuance will be used to finance Cemex’s sustainable development projects, including energy efficiency, renewable energy, and water conservation initiatives.

The issuance of these bonds is part of Cemex’s commitment to sustainable development and corporate responsibility. It is also in line with the company’s strategy to diversify its funding sources and lengthen its debt maturity profile. This transaction demonstrates Cemex’s leadership in sustainable finance and its ability to access new capital markets to support its growth plans.

Why is Cemex setting new standards?

CEMEX, S.A.B. de C.V., announced today the pricing of its $500 million Green Perpetual Hybrid Notes (the “Notes”), which will be due in 2099 and will pay a coupon of 5.875% per year. The Notes were sold at par and will be listed on the Luxembourg Stock Exchange.

The issuance of the Notes is part of CEMEX’s strategy to finance its growth while reducing its environmental impact and promoting sustainable development. The proceeds from the sale of the Notes will be used to finance investments in renewable energy, energy efficiency, and other low-carbon technologies that will help reduce CEMEX’s carbon footprint.

The Notes are part of CEMEX’s Green Bond program, which was launched in 2013 with the aim of supporting projects that have a positive environmental or climate impact. To date, CEMEX has issued over $2 billion in green bonds, which have been used to finance a wide range of sustainable projects, including wind farms, solar power plants, energy-efficient buildings, and waste-to-energy facilities.

Conclusion

Cemex has once again shown its commitment to sustainability by setting a new standard for corporate finance with their perpetual green hybrid offering. This innovative offering has the potential to benefit both Cemex and its stakeholders in numerous ways, including reducing costs and increasing access to capital while helping the environment as well. Through this move, Cemex has demonstrated that corporate environmental stewardship is no longer an afterthought but can be an integral part of everyday business decisions. We anticipate seeing more sustainable solutions like this from Cemex in the future as they continue to lead the way towards a better world for everyone.