Cementos Argos, Colombia’s biggest cement maker, on Wednesday will sell as much as 250 billion Colombian pesos (US$105m) worth of bonds maturing in six months and one year. Argos will use the proceeds of the sale as working capital, the company said Tuesday in a statement.
The cement maker will sell the bonds in two tranches of up to COP150 billion, but the total amount of the sale won’t be more than COP250 billion. The first tranche will mature in 180 days and the other will mature in 364 days.
The papers maturing in six months will pay a yield lower or equal to the benchmark DTF - a weighted average of the rates paid by financial institutions on 90-day certificates of deposit calculated by the central bank - plus 1.38 percentage points; and the one-year papers will pay a yield lower or equal to DTF plus 1.65 percentage points.
In March, Argos agreed to buy US-based ready-mixed concrete supplier RMCC Group Inc. (RMCC.AJ) for US$435m and previously had bought two cement companies in the US for US$257m.