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Orbia Issues Inaugural Sustainability-Linked Bonds, Supporting its Environmental Commitments

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Orbia Advance Corporation, S.A.B. de C.V. (BMV: ORBIA*) ("the Company" or "Orbia") announced today the launch of its inaugural sustainability-linked bonds in the international capital markets. This transaction incorporates the issuance of $600 million at 1.875% senior notes due in 2026, and $500 million at 2.875% senior notes due in 2031 (the "bonds").

Says Sameer Bharadwaj, CEO of Orbia, "This transaction demonstrates Orbia’s commitment to the environment and bringing forth cleaner, greener solutions that are better for people and planet. Our journey thus far has been guided by a drive for positive impact and we are delighted to enable investors to join us in advancing life around the world, responsibly."

In connection with the bonds issuance, Orbia has adopted and published its sustainability-linked bond framework. Based on the framework and industry analysis, ISS provided a second party opinion, concluding the KPIs selected are relevant, material and core to Orbia’s business model, consistent with its sustainability strategy and aligned with the International Capital Market Association’s Sustainability-Linked Bond Principles.

The sustainability-linked bond framework includes certain sustainability performance targets of the Company, which reinforce Orbia’s overall strategic priorities. Per the terms of the notes, the achievement of these targets will be verified by an accredited independent third party. Additionally, adherent to this framework, Orbia will publish a sustainability-linked securities update annually on its website. This update will be part of the Orbia Sustainability Report, inclusive of up-to-date information as to key sustainability performance indicators.

The sustainability-linked bond framework and second-party opinion are available at: https://www.orbia.com/sustainability/.

This issuance received credit ratings of Baa3 from Moody’s, BBB- from S&P and BBB from Fitch Ratings.

The proceeds from this issuance will be used to retire certain outstanding indebtedness, pursuant to the redemption of part or all of Orbia’s MXN 2022 notes and USD 2022 notes, and for general corporate purposes including refinancing or repayments of other existing indebtedness.

Upon the redemption of Orbia’s MXN 2022 and USD 2022 notes, the Company’s average debt maturity will be extended to 14 years with no material debt amortization before 2026.

About Orbia
Orbia is a community of companies united by a shared purpose: to advance life around the world. The Orbia companies have a collective focus on ensuring food security, reducing water scarcity, reinventing the future of cities and homes, connecting communities to data infrastructure and expanding access to health and wellness with advanced materials. Orbia operates in the Precision Agriculture, Building and Infrastructure, Fluor, Polymer Solutions and Data Communications sectors. The company has commercial activities in more than 110 countries and operations in over 50, with global headquarters in Mexico City, Boston, Amsterdam and Tel Aviv. To learn more, please visit orbia.com.

This press release may contain "forward-looking" statements that reflect management's expectations for the future. The words "anticipate," "believe," "expect," "hope," "have the intention of," "might," "plan," "should" and similar expressions generally indicate comments on expectations. The final results may be materially different from current expectations due to several factors, which include, but are not limited to, global and local changes in politics, economic factors, business, competition, market and regulatory factors, cyclical trends in relevant sectors as well as other factors that are highlighted under the title "Risk Factors" in the annual report submitted by Orbia to the Mexican National Banking and Securities Commission (CNBV) and available on our website at https://www.orbia.com/investor-relations/financial-reports/annual-reports-and-filings/. The forward-looking statements included herein represent Orbia’s views as of the date of this press release. Orbia undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law."

View source version on businesswire.com: https://www.businesswire.com/news/home/20210506006334/en/

Contacts

Investors
Javier Luna, Capital Markets and Investor Relations Director
+52 55 5366 4151
javier.luna@orbia.com

Media
Kacy Karlen, Corporate Communications Director
+1 865-410-3001
kacy.karlen@orbia.com