IDB supports Argentine cement company Loma Negra’s investment plan

IDB supports Argentine cement company Loma Negra’s investment plan
Published: 21 November 2008

Medium-term financing for expansion of production capacity and environmental measures to reduce emissions.

The Inter-American Development Bank will provide a loan of up to US$25m to Loma Negra, Argentina’s leading cement producer, to help finance the company’s US$235m, five-year capital expenditure programme.

The IDB loan is expected to be complemented with up to US$75m in additional lending from commercial banks.

This operation will allow Loma Negra, which is owned by the Brazilian conglomerate Camargo Correa, to access longer tenor financing than is currently available in the Argentine financial market, suiting the cement maker’s investment plans.

“By providing loans with longer maturities, the IDB will make it possible for Loma Negra to carry out a comprehensive action plan to bring its environmental standards up to international levels,” said IDB project team leader Martin Duhart.

The cement company plans to install state-of-the-art gas and dust filters in its plants and enclose warehouses to cut dust emissions during transportation and storage of materials. Also, it will upgrade its fuel handling facilities and clean and restore abandoned limestone quarries.

Loma Negra’s expansion program foresees the construction of two new cement mills in the provinces of Buenos Aires and Catamarca and the modernization of an existing mill in Buenos Aires. These investments will boost the company’s total installed production capacity by approximately 20 per cent.