Lafarge plans EUR500m March 2016 bond

Lafarge plans EUR500m March 2016 bond
09 November 2005


Lafarge plans to sell a EUR500m bond due March 2016 this week, an official at one of the banks managing the sale said on Tuesday. BNP Paribas, Calyon, HSBC and RBS are managing the sale.  Proceeds will be used for general corporate purposes and to help repay an Oceane convertible bond that matures in January 2006, the official said. 
 
"We expect to price this week," he said, adding that there would be an investor conference call on Wednesday.  Lafarge holds BBB credit ratings from Standard & Poor’s and Fitch Ratings, and an equivalent Baa2 rating from Moody’s Investors Service -- all on the second-lowest rung of investment grade. 
 
Lafarge last tapped the European bond markets in March, selling a EUR500m 15-year bond with a 4.75 per cent coupon at the top end of initial price guidance as the wider market soured. 
 
On Monday, the company’s majority-owned Lafarge North America Inc. posted a rise in third-quarter profits but warned higher energy prices and inflation were likely to squeeze profit margins in the rest of the year. 
 
In late October, the French parent company raised doubts over whether it could meet an already lowered profit forecast due to weakness in North America, driving its shares to an 18-month low.

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