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Home>Mexichem Successfully Completes a Two-Tranche US$1 Billion International Bond Offering

Mexichem Successfully Completes a Two-Tranche US$1 Billion International Bond Offering

Mexichem Successfully Completes a Two-Tranche US$1 Billion International Bond Offering

09/28/2017

Mexichem Successfully Completes a Two-Tranche US$1 Billion International Bond Offering

Mexichem, S.A.B. de C.V. (BMV: MEXCHEM*) (“Mexichem”) reported that it has successfully completed a 144A / Reg S US$1 billion bond offering.

The offering is comprised of two tranches: a US$500 million bond that will carry a fixed rate of 4.00% and mature in October 2027 and a US$500 million bond that will carry a fixed rate of 5.50% and mature in January 2048. The proceeds of the offering will be used to finance Mexichem’s recent acquisition of Netafim, the world’s largest micro-irrigation company and for other corporate purposes.

The competitive rates at which the bonds were placed and the fact that the offering was more than 8 times oversubscribed demonstrate the market’s confidence in Mexichem’s growth strategy, future prospects and disciplined financial management. More than 350 investors participated in the offering.

The issuance was rated Baa3 by Moody’s, BBB- by Standard & Poor’s and BBB by Fitch.

ABOUT MEXICHEM

Mexichem is a global leader in plastic piping, one of the most cost-efficient PVC producer and one of the world’s largest chemical and petrochemical companies. Mexichem contributes to global development by delivering an extended portfolio of products to high growth sectors such as infrastructure, housing, Datacom, water management, among others. With operations in over 30 countries, Mexichem’s global footprint includes more than 18,000 employees, 120 plants, 2 fluorite mines, 15 R&D laboratories and 8 training academies. Mexichem has annual revenues of US$5.4 billion, it has over 50 years of history and more than 30 years trading on the Mexican Stock Exchange. The company is member of the Mexican Stock Exchange Sustainability Index and the sustainability emerging markets index FTSE4Good.

Forward-looking Statements

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