Braskem S.A. ("Braskem" or "Company"), pursuant to CVM Resolution 44/21 and complementing the Notice to the Market dated as of September 28, 2021, hereby announces to its shareholders and the market that its indirect subsidiary Braskem Idesa ("BI") has secured the applicable corporate approvals, including final approval by its shareholders and creditors regarding (i) the Amendment to the ethane supply agreement signed with PEMEX Transformación Industrial and with PEMEX Exploración y Producción ("PEMEX") and (ii) the Agreement with measures to support the construction of an ethane import terminal signed with Petróleos Mexicanos, PEMEX Logística and other government entities.
Furthermore, BI concluded its debt refinancing plan replacing remaining balance of US$1.35 billion from Project Finance with new debt instruments under a corporate format and with a long maturity profile, which effectively lengthened its average debt maturity term to 9 years. With the settlement of the Project Finance debt, the guarantees pledged by Braskem to BI, in the total amount of US$358 million, will be extinguished.
The new capital structure of BI includes the issue of debt securities with commitment and interest rates linked to targets for reducing carbon emissions, in line with the Company's long-term sustainable development strategy.
In this way, Braskem fulfills its objective established for 2021 of negotiating a definitive amendment with PEMEX and expanding the ethane import operations and, through BI, reinforces its commitment to Mexico, to the local petrochemical industry and to the continuous search for increasing the availability of feedstock for the plastic transformation industry.
For more information, contact Braskem's Investor Relations Department by calling +55 (11) 3576-9531 or emailing firstname.lastname@example.org .
São Paulo, October 20, 2021.
Pedro van Langendonck Teixeira de Freitas
Chief Financial and Investor Relations Officer
This Material Fact notice may contain forward-looking statements These statements are not historical facts, but are based on the current view and estimates of the Company's management regarding future economic and other circumstances, industry conditions, financial performance and results, including any potential or projected impact related to Braskem Idesa on the Company's business, financial condition and operating results. The words "project," "believe," "estimate," "expect," "plan" and other similar expressions, when referring to the Company, are used to identify forward-looking statements. Statements related to the possible outcome of legal and administrative proceedings, implementation of operational and financing strategies and investment plans, guidance on future operations, as well as factors or trends that affect the financial condition, liquidity or operating results of the Company are examples of forward-looking statements. Such statements reflect the current views of the Company's management and are subject to various risks and uncertainties, many of which are beyond the Company's control. There is no guarantee that the events, trends or expected results will actually occur. The statements are based on various assumptions and factors, including general economic and market conditions, industry conditions and operating factors. Any change in such assumptions or factors, including the projected impact related to Braskem Idesa on businesses, employees, service providers, shareholders, investors and other stakeholders of the Company can cause actual results to differ significantly from current expectations. For a comprehensive description of the risks and other factors that could impact any forward-looking statements in this document, especially the factors discussed in the sections, see the reports filed with the Brazilian Securities and Exchange Commission (CVM).