Republic Cement Corp said it will issue its convertible loan notes worth 1.35 bln pesos to Lafarge Cement to December 1. The notes were previously planned to be issued last Monday. It did not say why the issue date was changed.
Republic Cement previously said it will issue the debt papers to Lafarge Cement as payment for the latter’s wholly-owned unit Continental Operating Corp. The notes will have an annual interest rate of 8 per cent and can be converted into 1.35 bln common shares of Republic Cement, after the fifth year of the share purchase. Republic Cement owns five cement companies, namely Fortune Cement Corp, Premier Cement, Iligan Cement, Mindanao Portland Cement, FR Cement and Lloyds Richfield Industrial Corp. Continental’s cement manufacturing plants, meanwhile, are in the provinces of Bulacan and Rizal in the northern Luzon island.