Cementos Molins signs a novation of its syndicated sustainable financing

The maturity is extended by two years and all other conditions remain unchanged.

Cementos Molins has signed a second novation of its sustainable syndicated financing, which was originally formalised in 2019 with a first novation completed in 2021. This second continues to be classified as a "sustainability linked loan" and extends the maturity by another two years until December 2028, maintaining the amount to €300 million divided between a term loan of €75 million and a revolving credit facility of €225 million. All other terms and conditions also remain unchanged.

The financing, which was the first sustainable syndicated financing in the building materials and solutions sector in Europe, continues to be linked to sustainability targets, more specifically to the reduction of carbon emissions, one of the main drivers of the company's sustainability roadmap.

The novation was signed by all the financing entities and 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. Likewise, Sustainalytics has issued an independent opinion on the sustainability credentials.

Cementos Molins has a solid financial position with a net financial debt to EBITDA ratio of only 0.1 as of September 30th 2023. Jorge Bonnin, Chief Financial Officer of Cementos Molins, comments on the relevance of the novation of sustainable syndicated financing: “This novation extends the maturity of our debt and achieves a more balanced maturity profile over the coming years, while maintaining the terms and conditions in a volatile market of high interest rates. This, together with the solid financial position and strong cash generation, enables the execution of new growth opportunities and the investments foreseen in the sustainability roadmap 2030”.