Mexican petrochemical company Braskem Idesa plans to issue sustainability-linked bonds (SLBs) due 2032 as per Latin Finance sources. The company appointed Morgan Stanley, Crédit Agricole, Deutsche Bank and Itaú BBA as bookrunners and global coordinators of the deal. The sources added that the deal could be between $750mn and $1bn. The proposed bonds would carry a coupon step-up of 37.5bp if the company fails to cut emissions by 15% by 2028. The notes are rated B+ by Fitch. Proceeds will be used for refinancing $1.36bn in project finance debt and to pay off their bonds due 2029. This comes two weeks after Braskem announced a new gas supply agreement between its Mexican subsidiary Braskem Idesa and Pemex.
Braskem Idesa’s USD bonds were down with its 7.45% 2029s down 0.78 to 105.582, yielding 6.53%.
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