Colombia’s biggest cement maker Cemento Argos has issued 450bn pesos (US$197m) in bonds on the local market, the country’s press reported. The funds raised with the bond issue will be used to replace short-term debt and finance investments made by the company and its subsidiaries, according to statements. The bonds proved to be quite popular with investors, as demand outstripped supply easily, with requests for 1.5tn pesos. The yield of the bonds is indexed to inflation.
The firm issued 80bn pesos in bonds at seven years with a 2.4 per cent effective annual return, plus any additional variation according to the consumer price index (IPC). Another 80bn pesos in 10-year bonds were released at 2.88 per cent plus the IPC adjustment, and 290bn pesos were issued at 12 years at 3.17 per cent plus the IPC.