The Mexican unit of the American Kloeckner Metals Corporation received a $150 million syndicated loan from three banking institutions led by the British bank HSBC for working capital and to achieve its decarbonization objectives.
"This financing will allow Kloeckner to meet its working capital needs in Mexico, following the purchase that closed in 2023 of the company National Material of Mexico (NMM), a materials supplier that serves the automotive and industrial end markets in North America," the banking institution reported in a statement.
The financial terms of the loan such as interest rate, term and amortization date were not disclosed. The loan was through the Asset Based Lending (ABL) figure.
According to the statement, HSBC Mexico acted as the structuring and collateral monitoring agent for the club deal for the credit for the steel and metal products distributor Klöeckner Metal Service Center de México (Kloeckner México), a subsidiary of the United States-based company, Kloeckner Metals Corporation.
Kloeckner considers the decarbonization of the steel industry as a strategic opportunity, which will include the development of a portfolio of materials with CO2 reduction and the introduction of rating scales for green steel, stainless steel and aluminum. This is aimed at achieving net zero throughout the value chain by 2050.
HSBC's entry into the steel market in Mexico is noteworthy. Until recently, only the Mexican unit of the Spanish BBVA was financing this industry, at least publicly.