Cemex jumps on bets fed swap may help financing

Cemex jumps on bets fed swap may help financing
02 April 2009

Cemex SAB, the Mexican cement maker currently in talks with creditors to refinance $14.5 billion of debt, saw its stocks rise after the central bank said it will tap a $30 billion swap line with the Federal Reserve to help companies meet financing needs, according to reports by Bloomberg.


Cemex gained 4.4 percent to 9.31 pesos in Mexico City trading, the highest since February 24. The American depositary receipts increased 6.2 percent to $6.64 in New York.


Cemex shelved a planned $500 million bond sale last month after borrowing costs soared. The global credit crisis has hampered the company’s ability to refinance short-term loans it used to pay for the $14.2 billion purchase of Rinker Group Ltd. in 2007.


Banco Santander SA said today that while it did not expect a government “rescue” package for Cemex, the company could access “general” programs such as the swap facility.

Published under Cement News