Mexican automotive supplier Nemak issues US$ 500 million bond

Mexican automotive supplier Nemak issues US$ 500 million bond

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Nemak, S.A.B. de C.V., a Tier 1 automotive supplier based in Nuevo Leon, today announced the placement of a US$ 500 million bond issue in the international debt markets. 

The notes have a coupon of 4.75% and a maturity period of 7 years, representing the all-time lowest coupon for a BB+ rated issuance from a Latin American company. 

The proceeds from the placement will be used to refinance the company’s existing US$ 500 million 5.5% notes due 2023.

The new bond issue was rated Ba1, BB+, and BB+, one notch below investment grade, with a positive outlook from two of three main rating agencies and a stable outlook from the other agency.

“We are pleased with the success of this bond issue, a clear sign of investor confidence in our company. This refinancing will enable us to lower our financial costs and to extend the average life of our debt from 5.2 to 5.8 years, thereby reinforcing our financial position,” said Armando Tamez, CEO of Nemak, in a statement.


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