Hogan Lovells counsels CBC on its first sustainable bond in Central America

Hogan Lovells has advised the bottling company CBC on the first bond linked to the sustainability of a Central American issuer

 Global law firm Hogan Lovells has counselled The Central America Bottling Corporation (CBC), CBC Bottling Holdco, S.L., and Beliv Holdco, S.L., as co-issuers in connection with a Rule 144A and Regulation S offer of $1.1 billion US dollars aggregate principal amount of the Co-Issuers’ Senior Secured Sustainability Notes due 2029 and a successful tender offer and consent solicitation in connection with, and subsequent redemption of, CBC’s Senior Secured Notes due 2027.

This offering results in the first US dollar-denominated sustainability-linked bond (“SLB”) in the international markets of a bottling company in the Americas, the first SLB by a Central American issuer and the second largest single tranche SLB by a Latin American issuer.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC acted as initial purchasers in connection with the Offering and as book-running managers for the Offering.
The transaction, which reduced CBC’s overall cost of debt while extending its maturity profile, underscores CBC’s strong credit profile and its attractiveness to a broad investor base, including US HG, EM and ESG-focused investors.

The offering places CBC at the forefront of the industry’s decarbonisation strategy and in the development of the circular economy in the countries in which it operates, as well as reaffirming its commitment to its sustainability goals by adding a “skin in the game” feature linked to two material, core and relevant sustainability performance targets included in the new VMS.

Hogan Lovells’ transatlantic team was led by partners Ben Garcia (pictured top left) from the New York office and Jorge Diaz-Silveira (pictured top right) from the Miami office, along with New York senior associate Meredith Hines, as well as international consultant Pedro Martinez and associate Ernesto Sanz, both from the Miami office. Washington, D.C. partner Scott Lilienthal (pictured bottom left) advised on the Tax aspects of the transaction. In Madrid, the team included partner Juan Garicano (pictured bottom right) and counsel Alejandro González, with senior associates Alejandro Moscoso del Prado and Carlos Meijide, and associates María Santana and Laura Wouters.