Cementos Molins signs novation of syndicated sustainable financing

Cementos Molins signs novation of syndicated sustainable financing
16 November 2021

Cementos Molins signed a renewal of its sustainable syndicated financing for the group and affiliates in Spain, which was formalised in 2019. The novation continues to be classified as a “sustainability-linked loan” extends the maturity by two years until December 2026. In addition, the agreement now has a limit up to EUR300m, of which EUR75m as a term loan and EUR225m as revolving credit facility. All other terms and conditions remain unchanged.

The financing, which was the first sustainable syndicated financing of a cement company in Spain, continues to be linked to sustainability targets, more specifically to the reduction of CO2 emissions, one of the drivers of the company's sustainability roadmap.
The novation, signed by all the financing entities of the original syndicated sustainable financing, involves CaixaBank, acting as agent, sole bookrunner and mandate lead arranger, Banco Sabadell, BBVA, and Banco Santander, acting as mandate lead arrangers, and HSBC and Banca Intesa Sanpaolo, acting as participants; this last entity is participating for the first time in the syndicated financing. Cuatrecasas has acted as legal advisor to Cementos Molins, and Clifford Chance to the financing entities. Likewise, Sustainalytics has issued an independent opinion on the sustainability credentials.
Cementos Molins has a robust financial position with net financial debt as of 30 September 2021, amounting to a net cash balance of EUR11m. Jorge Bonnin, CFO of Cementos Molins, comments about the relevancy of the sustainable syndicated financing novation: “This novation, together with the robust financial position and the strong cash generation, enables the development of the profitable and sustainable growth strategy through markets consolidation and development in new markets”.

Published under Cement News