Alpek successfully issues bond for U.S. $600 million

Sets record once again with lowest coupon in its history at 3.25%

Monterrey, N.L., Mexico. February 18th, 2021 – Alpek, S.A.B. de C.V. (“Alpek”) announced today the successful issuance of a U.S. $600 million bond in the international market, pursuant to Rule 144A and Regulation S. The notes have a 3.25% annual coupon, setting a record as the lowest in our history, and with a maturity period of 10 years. The net proceeds from the issuance will be used to pay the consideration including accrued and unpaid interest, on the concurrent tender offer in connection with Alpek’s 2022 bond, with the remainder used for debt repayment and general corporate purposes.

“We consider that Alpek’s record volume amid the COVID-19 pandemic and strong cash flow generation, among other factors, all contributed to this successful transaction being oversubscribed over 9 times,” stated José de Jesús Valdez, Alpek’s CEO. “We enjoyed ample participation from high-quality investor accounts with ample geographically diversity, as 54% of orders came from North America, 34% from Europe, and 5% from Asia. Moreover, we are also very proud that our commitment and recent progress related to ESG was rewarded through strong participation from ESG-dedicated funds.”

The transaction was rated Baa3 / BBB- / BB+ by Moody’s, Fitch and S&P respectively.