GCC Successfully Completes the Issuance of a Sustainability-Linked Bond
CHIHUAHUA, Mexico., Jan. 11, 2022 (GLOBE NEWSWIRE) — GCC, S.A.B. de C.V., (“GCC” or “the company”), a leading producer of cement and concrete in the United States and Mexico, today announced that it completed the issuance of a US$500 million sustainability linked bond with an interest coupon of 3.614% and a maturity date of April 2032 (the “SLB”).
The net proceeds obtained from the SLB issuance will be used to pay for the redemption of the entire amount of the GCC 5.250% notes due in 2024, partially refinance bank debt maturities, and the remainder, if any, for general corporate purposes.
The SLB has been rated BBB- outlook stable by Standard & Poor’s and Fitch Ratings and is aligned with the Sustainability-Linked Bond Principles leveraging a core, relevant and material sustainability performance target such as CO2 intensity reduction.
The SLB will contribute to the sustained growth of GCC while reducing interest expenses and improving the company’s maturity profile.
Enrique Escalante, GCC’s CEO said, “We recognize the role of sustainable finance in supporting the transition to a low-carbon and more resource-efficient economy and hope our issuance of sustainability-linked bond will inspire other companies to do the same.”
About GCC
GCC is a leading supplier and producer of cement, concrete, aggregates and construction‐related services in the United States and Mexico, with an annual cement production capacity of 5.8 million metric tons. Founded in 1941, the Company’s shares are listed on the Mexican Stock Exchange under the ticker symbol GCC*.
The Notes will not be registered with the National Securities Registry (Registro Nacional de Valores) maintained by the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores, CNBV), and may not be offered or sold publicly in Mexico. As required by the Mexican Securities Market Law (Ley de Mercado de Valores) the Note issuance will be notified to the CNBV.
The Notes are exempt from registration under the Securities Act of 1933 (the “Securities Act”) and may not be offered or sold in the United States, absent an effective registration statement or an applicable exemption from such registration requirements of the Securities Act.
This announcement does not constitute an offer to sell or solicitation of an offer to purchase with respect to the Notes or other securities, and does not constitute an offer to sell, solicit or purchase in any state or jurisdiction in which such offer, solicitation, or purchase would be unlawful.
For further information, contact:
GCC Investor Relations
Ricardo Martinez
+52 (614) 442 3176
+ 1 (303) 739 5943
Forward-Looking Statements
This press release may contain forward-looking statements. All statements that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “intend,” “project” and similar expressions are generally intended to identify forward-looking statements. These statements are subject to risks and uncertainties including, among others, changes in macroeconomic, political, legal, public health crises including COVID-19, governmental or business conditions in the markets where GCC operates; changes in interest rates, inflation rates and currency exchange rates; performance of the construction industry; and pricing, business strategy and other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from the beliefs, projections, and estimates described herein. GCC assumes no obligation to update the information contained in this press release.
