Alpek issues bond for U.S. $500 million

Monterrey, N.L., México, September 11, 2019 – Alpek, S.A.B. de C.V. (“Alpek”) announced today the successful issuance of a U.S. $500 million bond in the international market, pursuant to Rule 144A and Regulation S. The notes have a 4.25% annual coupon, the lowest in Alpek’s history, and a maturity period of 10 years. The net proceeds from the issuance will be used to pre-pay short term debt as well as for other general corporate purposes.

José de Jesús Valdez, Alpek’s CEO stated: “We consider that our leadership position in the Americas, portfolio of demand-resilient products, proven track record of growth, and stable financial policy, among other factors, contributed to this transaction being over-subscribed by more than 6 times. We had ample participation from high-quality investor accounts which were geographically diversified, with 48% of orders in North America, 34% in Europe, 10% in Asia, and 8% elsewhere. Through this bond we have enhanced our financial profile, refinancing notes maturing in 2019, and extending our average debt maturity from 2.7 years to 4.9 years.” This transaction was rated Baa3/BBB-/BBB- by Moody’s, S&P & Fitch respectively