CMPC issues its first bond in the Mexican market for a total of MXN 3.2 billion, or approximately USD 188 million
CMPC has issued two series of bonds in the Mexican market, a 2-year floating rate green series for MXN 1.6 billion and a 9-year series linked to sustainability objectives for an additional MXN 1.6 billion, each equivalent to approximately USD 94 million.
The issue received exceptional demand from local investors, achieving a variable coupon rate of TIIE [Interbank Equilibrium Interest Rate of Mexico] plus 80 basis points for the short tranche and a fixed rate of 10.62% for the long tranche, equivalent to a differential of 204 basis points over the reference rate (Series M Bond). BBVA, Santander and Scotiabank jointly served as underwriters for the bond issue.
This is CMPC’s first bond issue in the Mexican market, and reflects the Company’s commitment to Latin America and Mexico in particular. It should be noted that CMPC recently completed the purchase of Grupo P.I. Mabe S.A. de C.V. for MXN 5,450, significantly increasing its investment in that country. This means it makes more rational sense for the Company to obtain financing in Mexican pesos, thus achieving a better match with the income currency of local businesses (Softys Mexico and the recent above-mentioned acquisition).
CMPC CFO Fernando Hasenberg said, CMPC’s Finance Manager, Fernando Hasenberg said, “It’s very important for us to diversify our financing sources and this transaction shows that there are investors, including Mexico, who trust us and are very interested in financing CMPC’s growth.”