The financial part of the multi-Latin Corporación Multi Inversiones announced the successful placement of this amount in green bonds and a syndicated loan for $300 million.
CMI Energy, which is part of the CMI Capital unit of Corporación Multi Inversiones (CMI), a company that, this year celebrates its centennial, successfully closed the placement of $700 million in green bonds, with a maturity of 8 years (2029) and a rate (coupon) of 6.250%.
In addition, it completed a syndicated loan (granted by several financial institutions at the same time), for debt refinancing, the multi-Latin company in Guatemala reported in a statement.
Green bonds are debt instruments, the amount of which is used exclusively to finance environmentally sustainable projects, to contribute to mitigating climate change, to contribute to the establishment of a low-carbon economic growth and development model.
The investors who acquired the bonds issued by CMI Energy come from different places: from the United States, 56%; from Europe, 29.4%, 12.3% from Latin America, and 2.3% from Asia. The demand for the e bonds was five times higher than the size of the amount issued.
“We are very proud to be the leading private renewable energy company in the region. Our purpose is to generate impact investments to promote sustainable development. Through the placement of green bonds, we seek to optimize the capital structure of our company and continue with an operation of excellence, continuous growth and the generation of positive impact for the communities where we operate”, explains Enrique Crespo, CEO of CMI Capital.
The negotiation, that had the financial and legal advice of Rothschild & Co and Clifford Chance respectively, was rated by the agencies Moody's (Ba3); Fitch Ratings (BB-) and Standard & Poor's (BB-), " an improvement over previous ratings," the statement said.
The placement marks the entry of CMI Energy to the international capital market, with the largest and most diversified private portfolio of 100% renewable energy in Central America and the Caribbean. "This is the largest green bond placement carried out by a renewable energy company in Central America and the Caribbean to date," says the company.
In Latin America, Peru was the first issuer of green bonds ($ 664 million), while Brazil is the largest regional market in this type of instruments, according to a July 2019 report from the Climate Bonds Initiative.
Source: El Economista