Votorantim Cimentos issues EUR500m in European bonds

Votorantim Cimentos issues EUR500m in European bonds
Published: 08 May 2015

Votorantim Cimentos SA announces the issuance of its Euro-denominated bond, representing the first issuance since November 2014 by a Brazilian company in the international capital markets in 2015.  The issuance followed three days of investor meetings in London, Amsterdam, Munich and Frankfurt, which resulted in an issuance of €500 Euro-denominated notes due 2022 bearing interest at the rate of 3.5 per cent per annum.

Despite intraday volatility in global capital markets, this successful issuance reaffirms Votorantim Cimentos’ commitment to improve its debt profile, strengthen its strong liquidity position and maintain its solid investment grade rating.

For the second time, Votorantim Cimentos has undertaken a large note issuance in the international capital markets without a guarantee from Votorantim Industrial or any other company of the Votoratim Group.

In April 2014, Votorantim Cimentos issued 3.25 per cent Euro-denominated notes due 2021 in an aggregate principal amount of €650m. Concurrently with this issuance, we concluded a tender offer of our 5.25 per cent Euro-denominated notes due 2017 pursuant to which €446.5m in aggregate principal amount of the 2017 notes were repurchased.

“Despite Brazil’s current challenging economic environment, there was strong demand for Votorantim Cimentos’ notes, consistent with last year’s bond offering. This demonstrates the company’s credibility across global financial markets. The issuance was completed at attractive rates without any guarantee from the Votorantim Group, evidencing the further evolution of Votorantim Cimentos’ corporate governance and financial discipline,” said Lorival Luz, Votorantim Cimentos’ Chief Financial and Investor Relations Officer.

Votorantim Cimentos’ financial discipline and conservative debt management lead Fitch to remove the company´s negative outlook, reaffirming its BBB stable rating during the first quarter of 2015. Votorantim Cimentos is also rated BBB by Standard & Poor’s and Baa3 by Moody’s, both with a stable outlook.