Monterrey, N.L., Mexico – September 30, 2026. Nemak, S.A.B. de C.V. (BMV: NEMAK) ("Nemak" or the "Company") announced today that it has fully refinanced its €500 million 2.25% Senior Notes due 2028 (the "Notes"), approximately two years ahead of their maturity.
"Addressing this maturity well in advance gives us a solid financial foundation to keep executing our strategy. The strong response from investors and banks reflects their confidence in Nemak's business and long-term outlook" said Hervé Boyer, Chief Executive Officer of Nemak.
The refinancing was funded through two sources:
1. Local bond issuance (Certificados Bursátiles). On July 31, 2026, Nemak placed Ps. 7,400 million in certificados bursátiles in the Mexican market with 4- and 7- year maturities. Demand reached approximately 2.8 times the initial target amount. The Company converted the full proceeds into euros, equivalent to approximately €371 million, through interest rate and cross-currency swaps to match the currency of its refinanced debt and its operating cash flows. As a result, the 7-year tranche yields a fixed euro rate of 5.30%, while the 4-year floating tranche yields 1M Euribor + 1.48%. Based on the reference rates in effect at the close of the transaction, the implied weighted financial cost of the issuance was approximately 4.36%.
2. Bank financing. A 5-year bank loan of €130 million with a single payment at maturity, at a rate of Euribor + 1.80%.
With these funds, Nemak completed a tender offer for the Notes on September 24, 2026, through which it repurchased approximately €447 million, or 89% of the outstanding principal amount, at par plus accrued interest. Through a concurrent consent solicitation, holders also approved amendments to the Notes' indenture, allowing Nemak to redeem the remaining balance of ~ €53 million on September 30, 2026. "This transaction reflects our proactive approach to maintaining a balanced debt profile and diversifying our funding sources, combining the Mexican debt market with bank financing. We appreciate the confidence of the investors and financial institutions who participated in this process," said Alberto Sada, Chief Financial Officer of Nemak.
The transaction reduces Nemak’s refinancing risk, diversifies its funding sources, extends the average life of the Company’s debt from approximately 3.4 years to 4.2 years, and maintains a debt profile predominantly denominated in hard currencies.
About Nemak
Nemak is a leading provider of innovative lightweighting solutions for the global automotive industry, specializing in the development and manufacturing of multi-material components for electric mobility, structural and chassis applications, as well as internal combustion powertrain. In 2025, it generated revenues of US$4.9 billion. For more information, visit nemak.com/