Cemex begins bond auction

Cemex begins bond auction
Published: 14 April 2005

Cemex began auctioning Wednesday bonds worth a total of 3.75bn pesos (US$339m), the company reported to the Mexico City bourse (BMV). The bonds are being offered in two tranches, the first of which is a four-year issue for a maximum of 2.25bn pesos with a referential rate of benchmark 91-day T-bill, maturing in April 2009. The second, seven-year issue will be for a maximum of 1.50bn pesos with a 10.39 per cent annual interest rate, maturing in April 2012.

The number of papers to be auctioned for the four- and seven-year issues is 15 million to 22.5 million and 13 million to 15 million, respectively. The papers each cost 100 pesos. Fitch and Standard & Poor’s have rated the bonds AA+(mex) and mxAA, respectively, due to Cemex’s high capacity to pay back interest and principal.