Corporación Multi Inversiones -CMI-, successfully placed US $ 700 million in Green Bonds

Corporación Multi Inversiones -CMI-, successfully placed US $ 700 million in Green Bonds

April 27 2021

This Corporación Multi Inversiones release was published using machine translation.

CMI Energía, part of the CMI Capital group of Corporación Multi Inversiones, (i) successfully placed US $ 700 million of green bonds, at an interest rate of 6.250% and maturing in 2029, and (ii) closed a syndicated loan of US $ 300 million to refinance your debt. The successful transaction was executed in the framework of CMI's 100th anniversary celebration.

This is the largest green bond placement carried out by a renewable energy company in Central America and the Caribbean to date, and marks the entry of CMI Energía into the international capital market, with the largest private portfolio of 100% renewable energy and diversified from Central America and the Caribbean.

Investors expressed their confidence in CMI and the region by making offers that were almost five (5) times the size of the issue. The geographic diversification of investors stands out, with offers from investors from the United States (56%), Europe (29.4%), Asia (2.3%) and Latin America (12.3%); many of which have a focus on ESG (environmental, social and governance) criteria, which in recent years have become the benchmark for socially responsible investment.

“We are very proud to be the leading private renewable energy company in the region. Our purpose is to generate impact investments that promote sustainable development.

Through the placement of green bonds, we seek to optimize the capital structure of our company and continue with an operation of excellence, continuous growth and the generation of positive impact for the communities where we operate ”, explained Enrique Crespo, CEO of CMI Capital.  

Rothschild & Co and Clifford Chance acted as financial and legal advisors, respectively, to CMI, in the transaction. The green bonds were rated Ba3 by Moody's, BB- by Fitch Ratings and BB- by Standard & Poor's (S&P); which represents an improvement in the previous qualifications.

The placement of green bonds implies the issuer's commitment to make sustainable investments. In this sense, the action is aligned with CMI Energía's objectives of contributing to the reduction of GHG emissions (greenhouse gases) and the decarbonization and diversification of the regional energy network in the countries where it operates. In this way, CMI Energía consolidates its investments in the region, under a solid vision of a sustainable future.

The 4 eligible categories, covered under the green bonds, which have been aligned to specific SDGs, are:

  • Renewable energy: Renewable energy and Climate Action
  • Energy efficiency: Renewable energy and Climate Action
  • Green buildings: Innovation and infrastructure and Sustainable cities and communities
  • Clean Transportation: Sustainable Cities and Communities

About the importance of this issue for CMI, Crespo explained: “Within the framework of CMI's 100-year history, CMI Energía successfully accesses the bond markets for the first time and in this way we consolidate our strengths as a group. multilatino family of business excellence and continuous growth, with knowledge and experience in business operations in the region ”.

CMI Energía reaffirms its commitment to continue working in all its geographies, as it has done for more than 25 years, with the highest quality standards, respect for human rights and a strong commitment to the care, protection and conservation of the environment. .

Green bonds and their guarantees have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") or any state securities law, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act.

Source: bnamericas