Republic Cement Corp said it has issued PHP1.35 billion worth of 10-year convertible loan notes to Lafarge Holdings (Philippines) Inc. The convertible notes, issued Wednesday, carry an interest rate of 8% a year.  Proceeds from the issue will be used by Republic Cement to purchase Continental Operating Corp, a local cement unit of Republic Cement shareholder, Lafarge. Lafarge can convert the notes to 1.35 billion common shares in Republic Cement. If it chooses to do so, that would increase the French company’s stake in Republic Cement to around 22.3 per cent. Lafarge currently owns 239 million shares, equivalent to a 4.13% stake in Republic Cement.
Published under Cement News