CMI placed the largest green bond in Latam

CMI Energía, led by Juan Luis Bosch Gutiérrez, achieved the highest green bond among renewable energy companies in Central America and the Caribbean. Here we tell you about this great success.

CMI placed the largest green bond in Latam

CMI Energía, which is part of Corporación Multi Inversiones in Guatemala, added US$700 million in green bonds, with an interest rate of 6.250% and maturity in 2029. It also closed a US$300 million syndicated loan to refinance its debt.

This achievement was made during the 100th anniversary of Corporación Multi Inversiones.

It is the largest green bond placement by a renewable energy company in Central America and the Caribbean to date. This marks CMI Energía’s entry into the international capital markets, with the largest and most diversified private 100% renewable energy portfolio in Central America and the Caribbean.

Investors placed their confidence in CMI and the region by making offers that were almost five times the size of the issue.

Also noteworthy was the geographic diversification of investors, with offers from investors in the United States (56%), Europe (29.4%), Asia (2.3%) and Latin America (12.3%); many of which have a focus on ESG (environmental, social and governance) criteria, which in recent years have become the benchmark for socially responsible investment.

“We are very proud to be the leading private renewable energy company in the region. 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 operation of excellence, continuous growth and the generation of positive impact for the communities where we operate,” said Enrique Crespo, CEO of CMI Capital.

Rothschild & Co and Clifford Chance acted as financial and legal advisors, respectively, to CMI on the transaction. The green bonds were rated Ba3 by Moody’s, BB- by Fitch Ratings and BB- by Standard & Poor’s (S&P); representing an upgrade from previous ratings.

Emissions reduction and decarbonization

The placement of green bonds implies the issuer’s commitment to make sustainable investments. In this sense, the action is aligned with CMI Energía’s objectives of contributing to the reduction of GHG (greenhouse gas) emissions and the decarbonization and diversification of the regional energy grid in the countries where it operates. In this way, CMI Energía consolidates its investments in the region, under a solid vision of a sustainable future.

The 4 eligible categories, covered under the green bonds framework, which have been 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 Transportation: Sustainable Cities and Communities

“As part of CMI’s 100-year history, CMI Energía successfully accesses the bond markets for the first time and in this way we consolidate our strengths as a multi-Latin family group of business excellence and continuous growth, with knowledge and experience in the operation of businesses in the region,” Crespo said about the importance of this issue for CMI.

CMI Energía reaffirms its commitment to continue working in all its geographies, as it has done for more than 25 years, with the highest standards of quality, respect for human rights and a strong commitment to the care, protection and conservation of the environment.

 

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