Cemex expecting US$170m

Cemex expecting US$170m
16 July 2009

Cemex expects to raise up to CHP2.3bn (US$170m) from a securitisation of accounts receivables Wednesday, the Wall Street Journal reported.

Cemex plans to place the 2.5-year bonds at a spread of two percentage points over the 28-day TIIE interbank rate, which currently stands at 4.835%, the report said.

Standard & Poor’s has assigned an mxAAA rating to the bonds, and local brokerage IXE Casa de Bolsa is the underwriter. The local subsidiary of HSBC Holdings PLC has been selected as the trustee.

"We view this as a positive development for Cemex and a signal the company may be regaining access to the capital market," Barclays Capital said in a note to investors.

Cemex has declined to confirm the amount or timing of the offering, according to the report.

Cemex has US$4.1bn in debt scheduled to reach maturity in the next 12 months. It intends to reduce net debt by approximately US$3.6bn this year to US$14.3bn in order to restore financial flexibility as soon as possible, and meet its financial commitments.

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