MEXICO CITY — Grupo Bimbo SAB de CV has issued $850 million in sustainability-linked bonds in the Mexican market, a move the company said represents the largest corporate sustainability-linked bond in the history of the Mexican market as well as the largest transaction of 2023. The bonds are linked to Sustainability Performance Targets aligned to the net zero-carbon emission strategy of Scope 3, which accounts for approximately 90% of Grupo Bimbo’s carbon footprint.
Issuance of the bonds took place in two series, according to Grupo Bimbo. The first series included approximately $680 million, with a 10-year maturity and a 9.24% annual fixed rate. The second series included approximately $170 million, with a three-year maturity and an annual floating rate of 28-day TIIE (Interbank Equilibrium Interest Rate) +0.10%.
Grupo Bimbo said it plans to use the proceeds from the bonds to repay bank debt in an effort to continue strengthening its financial flexibility.
“We tapped the Mexican market once again, this time through our first ESG-labeled bond, ranking the fifth SLB for Scope 3 globally and the first in Latin America, in line with our ambitious global long-term sustainability strategy,” said Diego Gaxiola, chief financial officer at Grupo Bimbo. “This transaction strengthens our financial position while reaffirming our sustainability commitments, specifically our undertaking to become a net zero-carbon company by 2050.”Additional details on Grupo Bimbo’s sustainable financing framework are availablehere.