Chilean cement maker Cementos Bio-Bio SA expects to place some $125m in inflation-indexed, local-currency bonds in the second half of October, Chief Financial Officer Carlos Longeri said Monday. "The placement will serve both debt refinancing and to fund new investments," he added in a telephone interview.
The company originally announced the issue June 9. Last Thursday, it said the issue would top the originally announced $80m limit and go ahead in two tranches. Local investment bank Celfin Capital will place the issue, Longeri said.
Chilean companies have increasingly looked to the local market to refinance outstanding debt amid low interest rates and available liquidity. Mexico’s Cemex sold its own shares in Cementos Bio-Bio for some $65m in April.