GRUPO BIMBO Announces the Successful Issuance of approximately $850 Million Dollars in Sustainability-Linked Local Bonds

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May 31, 2023, 20:32 ET

MEXICO CITY, May 31, 2023 /PRNewswire/ -- Grupo Bimbo S.A.B. de C.V. ("Grupo Bimbo" or the "Company") announces the successful issuance in the Mexican market of Sustainability-linked Bonds (Certificados Bursátiles) for a total amount of approx. $850 million dollars, which represents the largest corporate Sustainability-linked Bond (SLB) in the history of the Mexican market, and the largest transaction so far during the year.

The issuance included two series: the first series of approx. $680 million dollars, with a 10- year maturity and a 9.24% annual fixed rate; the second series of approx. $170 million dollars, with a 3-year maturity and an annual floating rate of 28-day TIIE +0.10%.

The Company will use the proceeds from this offering primarily to repay bank debt, to continue strengthening its financial flexibility.

The bonds are linked to Sustainability Performance Targets aligned to the net zero-carbon emission strategy of Scope 3, which accounts approximately for 90% of Grupo Bimbo's carbon footprint. The Company obtained a second- party opinion (SPO), who rated the Sustainability Performance Targets of this issuance as material and relevant, according to market standards.

"We tapped the Mexican market once again, this time through our first ESG- labelled 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. This transaction strengthens our financial position while reaffirming our sustainability commitments, specifically our undertaking to become a net zero-carbon Company by 2050", said Diego Gaxiola, CFO of Grupo Bimbo.

The Sustainability Linked Bond Framework is available at: https://www.grupobimbo.com/en/sustainable-financing-framework.

Grupo Bimbo once again recognizes and acknowledges the support of investors and BBVA, HSBC and Santander, the financial institutions that acted as joint bookrunners.

ABOUT GRUPO BIMBO

Grupo Bimbo is the leader and largest baking Company in the world and a relevant participant in snacks. Grupo Bimbo has 215 bakeries and plants and more than 1,600 sales centers strategically located in 34 countries throughout the Americas, Europe, Asia and Africa. Its main product lines include sliced bread, buns & rolls, pastries, cakes, cookies, toast, English muffins, bagels, tortillas & flatbreads, salty snacks and confectionery products, among others. Grupo Bimbo produces over 9,000 products and has one of the largest direct distribution networks in the world, with more than 3.4 million points of sale, more than 56,000 routes and over 143,000 associates. Its shares trade on the Mexican Stock Exchange (BMV) under the ticker symbol BIMBO, and in the over-the-counter market in the United States with a Level 1 ADR, under the ticker symbol BMBOY.

Contact: [email protected]

SOURCE Grupo Bimbo