Lafarge sets out guidance on Euro bond

Lafarge sets out guidance on Euro bond
Published: 20 May 2008

Lafarge has set guidance on its planned two-part euro bond that will help refinance its purchase of Egypt’s Orascom Cement, an official at one of the banks managing the sale said on Monday. Lafarge plans to sell a 3-year euro bond at mid-swaps plus 125-130 basis points and a 7-year euro bond at mid-swaps plus 170-175 basis points, the official said. Five-year credit default swaps on Lafarge were indicated at around 123 basis points on Monday morning, according to data from Markit. HSBC, Natixis, Royal Bank of Scotland and SG CIB are managing the sale of the bonds, which are to be priced later in the session. Lafarge is rated BBB by both Standard & Poor’s and Fitch Ratings.