Cementos Molins signs a novation of its sustainable syndicated loan

It extends the term by two years while maintaining the terms and conditions in a high interest rate market.

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

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

The novation has been signed by all the financing entities, including CaixaBank, which acts as agent bank and coordinator of the financing and sustainability, Banco Sabadell, BBVA, Banco Santander, HSBC, and Banca Intesa Sanpaolo. Sustainalytics has also acted as an independent advisor to validate the sustainability objectives.

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