CMI Energy, part of CMI Capital group of Corporacion Multi-Inversiones, (i) issued US$700 million of green bonds at an interest rate of 6.250% and expiring in 2029, and (ii) closed a syndicated loan of US$300 million to refinance all of its project finance indebtedness. The successful transaction was executed in the framework of CMI’s 100th anniversary.
This is the largest green bond placement by a renewable energy company in this region to date and represents CMI Energy entering international capital markets with the largest and most diversified private, one-hundred percent renewable energy portfolio in Central America and the Caribbean.
Investors expressed their confidence in CMI and the region by making offers that were nearly five (5) times the size of the issuance. The geographic diversification of investors stands out, with offers from the United States (56%), Europe (29.4%), Asia (2.3%) and Latin America (12.3%); many having focus on ESG (environmental, social and governance), which in recent years has become the benchmark for socially responsible investment.
“We are very proud to be the region’s leading private, renewable energy company. Our purpose is to generate impact investments that drive sustainable development.
Through the placement of green bonds, we seek to optimize the capital structure of our company and continue with an excellent operation, continuous growth, and the generation of positive impact for the communities in which we operate”, explained Enrique Crespo, CEO of CMI Capital.
Rothschild & Co and Clifford Chance acted as financial advisor and legal advisor to CMI, respectively, on the transaction. The green bonds were rated Ba3 by Moody’s, BB- by Fitch Ratings and BB- by S&P, which represents an improvement over the previous ratings.
Placing green bonds implies the issuer’s commitment to carry out sustainable investments. In this regard, the action is aligned with the objectives of CMI Energy of contributing to reduce GHG emissions (greenhouse gases), and the decarbonization and diversification of the regional energy network in the countries where it operates. CMI Energy consolidates its investments in the region, under a solid vision for a sustainable future.
The 4 eligible categories, covered under green bonds, and 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 Transport: Sustainable cities and communities
Mr. Crespo finalized explaining: “In the framework of CMI’s 100-year trajectory, CMI Energy has successfully entered the bond markets for the first time, consolidating our strengths as a Latin-American family group of business excellence and constant growth, with knowledge and experience in business operations in the region”.
CMI Energy ratifies its commitment to continue working in every geography where it operates, 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.
The green bonds and guarantees thereof have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws, and they may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.
