Ternium Mexico, a subsidiary of New York Stock Exchange-listed Ternium SA, has signed a US$1.25 billion green loan for a new steel plant.

The bank syndicate comprised BNP Paribas, Citigroup Global Markets, Crédit Agricole Corporate and Investment Bank, Intesa Sanpaolo ( New York Branch ), JPMorgan Chase Bank, Mediobanca International ( Luxembourg ), and Natixis New York Branch, which acted as joint lead arrangers and joint bookrunners. Crédit Agricole CIB served as administrative agent. Milbank advised the administrative agent, joint lead arrangers, and joint bookrunners.

The proceeds will enable the company to invest in the design, construction, operation, and maintenance of a new low-carbon steelmaking facility located in the Industrial Center of Pesqueria, Mexico. A portion of the loan will also be allocated to fund and/or refinance capital investments, operating expenses, and research and development initiatives.

Ternium is the largest steel producer in Latin America with an annual production capacity of 12.5 million tonnes.

Mitrani Caballero in Buenos Aires acted as international counsel to Ternium Mexico in connection with the structuring, negotiation, and execution of the loan.

“Coordinating the interests of multiple stakeholders across different jurisdictions, while ensuring compliance with the Green Loan Principles of the Loan Market Association and an evolving regulatory framework, posed unique challenges,” notes Mercedes Rodríguez Giavarini, Mitrani Caballero partner in charge of the transaction. “Navigating these complexities required close coordination to successfully structure a loan that supports Ternium’s ambitious sustainability goals.”