Global zinc producer announces the successful closing of a $320 million, five-year financing arrangement

Nexa Resources S.A., among the top five zinc producers worldwide, announced a $320 million, five-year sustainability-linked revolving credit facility (RCF). This facility replaces the 2019 $300 million RCF, which was set to mature in October 2024.

Under the terms of the agreement, the amounts drawn are subject to an initial interest rate of 1.60% plus Term SOFR (Secured Overnight Financing Rate). The applicable margin is subject to compliance with carbon reduction key performance indicator, reflecting the company’s unwavering commitment to reducing its carbon footprint. Such efforts are consistent with Nexa’s ESG ambitions, targeting net-zero greenhouse gas emissions by 2050, in alignment with the Paris Agreement.

A group of financial institutions led by BBVA Securities Inc., Citibank, N.A., HSBC Bank USA, N.A., JPMorgan Chase Bank, N.A., Mizuho Bank, Ltd., MUFG Bank, Ltd., Banco Santander (Brasil) S.A., Luxembourg Branch and The Bank of Nova Scotia acted as joint lead arrangers, bookrunners and initial lenders, with GLAS USA LLC acting as administrative agent.

Jose Carlos del Valle, Senior Vice President of Finance and CFO of Nexa, stated, “This sustainability-linked credit line exemplifies our commitment to proactive emission reduction and strengthens our environmental pledge.”

It’s noteworthy that this past July, Nexa disclosed its carbon output on the London Metal Exchange, showcasing one of the industry’s lowest carbon footprints for scopes 1 and 2. Based on the year 2022, the emission intensity of the company’s zinc production was 0.36 tons of CO2 (scopes 1 and 2) per ton of zinc and zinc oxide sold. This is roughly 9 times lower than the global industry average, as determined by a 2021 analysis from Skarn Associates.