- The company continues to bet heavily on financing strategies that support the promotion of better practices in environmental, social and corporate governance (ESG) criteria.
- The 300 million USD from this loan will be used to prepay an existing syndicated loan.
Argos, the cement Company of Grupo Argos, continues to demonstrate its concrete commitment in implementing positive ESG practices. As an example of the above, Argos North America Corp., its subsidiary, entered into a new loan for 300 million USD, in which the interest rate is linked to CO2 emission reduction indicators and the increase in the percentage of women in leadership positions. Cementos Argos S.A. and Argos USA LLC will act as guarantors in this operation. The financial entities with which the loan was taken are BNP Paribas Securities Corp., Natixis, New York Branch., Sumitomo Mitsui Banking Corporation (who will also act as administrative agent) and The Bank of Nova Scotia.
This loan is the first linked to ESG performance that Argos signs with international banks. Due to its trajectory and presence in other markets, this alliance requires high standards in terms of sustainability performance, that endorses the company’s commitment to continuous improvement of its processes and indicators.
«This operation, in addition to ratifying the confidence of financial entities in the company’s sustainability strategy, allows us to extend the duration of the debt and improve its financial cost, which has a positive impact on Argos’ debt indicators.”
Maria Isabel Echeverri
Argos’s Legal and Sustainability Vice President
With this new addition, there are now three credits linked to the performance of ESG indicators that Argos has signed so far in 2021.