Grupo Bimbo is getting ready to make the inaugural issuance of bonds linked to sustainability, in order to obtain financing for up to 15,000 million pesos through the Mexican Stock Exchange (BMV).
The largest baking group in the world reported that the resources it manages to attract from the investing public will be used to refinance bank debt, as well as for other corporate uses, in order to maintain a solid balance sheet, an optimal capital structure and its growth strategy. .
It will also allocate them to “ratify its commitment to environmental, social and governance (ASG) matters, by presenting the first sustainable stock financing operation associated with its goal of Zero Net Carbon Emissions,” he said in a presentation to investors.
The offer that is planned to be made on June 2 will be offered in two series with terms of four and 10 years.
Among the sustainable development objectives based on this issue are to reduce food waste by 50% by 2025 and reduce carbon dioxide (CO²) emissions by 50% by 2030. It also aims for 200,000 hectares of wheat to be cultivated under the regenerative agriculture process.
Sustainability-linked bonds are fixed-income instruments that have been popular in recent months, as companies are seeking financing to achieve or achieve their sustainable development goals by 2050. Therefore, they establish KPIs or Key Performance Indicators (key performance indicators) that are used to measure their proposed “progress” in said matter.
If they comply with them, they have a prize consisting of a preferential interest rate for the bond issue in question.
Assign rating
Fitch Rating assigned the “AAA” rating to this placement of linked bonds, which is the highest grade assigned by the agency on its national scale, due to the low expectation of default on its obligations.
“Fitch estimates that Bimbo’s consolidated revenues will grow 6.5% in 2023, driven by volume growth, implementation of pricing initiatives, and full consolidation of 2022 acquisitions (…) Profitability is expected to remain relatively stable despite the pressures in an environment of higher raw material costs and higher labor costs in the United States”, estimated the rating agency.
